The Impacts of Education and Non-Labor Income on Employment Among the Elderly: An Estimation with a Panel Logit Model to Address the Problem of Endogenous Predictors

Kim Cherljoo

doi:10.17000/kspr.23.1.201603.95

As Korean society grows rapidly older, a systematic analysis of the determinants of labor supply behavior among the elderly becomes a prerequisite for designing more effective senior employment policies and income security regime for the elderly. Literatures review shows that a majority of previous researches have been ignoring the problem of "endogenous predictor" especially when it comes to the estimation of the effects of the two key variables, education and non-labor income, on labor supply decisions among older people. They have failed to take into consideration the unobserved heterogeneities which might affect both labor supply decisions of the elderly and their levels of education and non-labor income, which means, according to some econometric literatures, that the estimated coefficients of the two predictors can be inconsistent. The paper tries to redress the endogeneity problem by employing a panel logit model with data from the 1st. to 4th. wave of the KLoSA(Korean Longitudinal Survey of Ageing) to estimate the effects of key predictors on the probability of getting jobs among older people(ages of 60 or older). Both a random effects and a fixed effects model reaffirms that non-labor income has a negative effect on the chances of being employed. And a random effects model shows that the effect of education is also negative, as has frequently been reported by previous studies. That means the effects of education and non-labor income on elderly employment remain negative after the effect of unobserved heterogeneities is controled for and the problem of endogenous predictors is redressed through an appropriate panel data analysis. These findings mean, in turn, that when Korean baby-boomers, who had acquired an unprecedentedly higher level of education and were expected to enjoy ever- larger amount of non-labor income than their preceding generations, retires in near future, their incentives to work will become much weaker and the lack of labor-force and the burden of financing increased public pension expenditure will become more troublesome. The paper concludes with recommending some policy initiatives helpful to solve these expected problems.

Citation status

KCI Citation Counts (3)
열림/닫힘 버튼
REFERENCES (58)
열림/닫힘 버튼
* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

[confproc] 강순희 / 2013 / 중고령자의 재취업 결정요인과 일자리 만족도에 관한 연구 / 한국고용정보원 2013 고용패널 학술대회 자료집 : 533~554

[report] 고용노동부 / 2013 / 고령자고용현황 / 고용노동부

[confproc] 권혁진 / 2011 / 고령 노동시장 정책의 방향 / 연금포럼 42 : 33~39

[report] 김경아 / 2010 / 여성의 공적 노후소득보장 확대방안: 국민연금을 중심으로 / 국민연금연구원

[journal] 김수완 / 2012 / A comparative social policy study on determinants of work of old adults / 한국사회정책 / 한국사회정책학회 19(2) : 69~97 / http://dx.doi.org/

[journal] 김용하 / 2011 / Effects of the Reform of Post-retirement Income Protection System / 한국사회정책 / 한국사회정책학회 18(2) : 209~241

[journal] 김용하 / 2011 / A Critical Review on Definition of the Baby-boom years, Labor market shocks, and Inter-generational income transfer / 보건사회연구 / 한국보건사회연구원 31(2) : 36~59

[journal] 김원섭 / 2008 / The Effect of National Pension on Retirement Behavior Among Middle-Aged and Older Korean Men and Its Policy Implications / 사회복지정책 / 한국사회복지정책학회 (35) : 111~139

[report] 김원섭 / 2007 / 근로유인 제고를 위한 국민연금제도 개선 방안: 사회투자전략의 관점에서 / 국민연금연구원

[journal] 김학주 / 2004 / Determinants of Reemployment of the Elderly workers / 한국노년학 / 한국노년학회 24(2) : 97~110

[report] 김헌수 / 2012 / 중고령자 조기은퇴와 조기노령연금제도 개선방안 연구 / 국민연금연구원

[report] 김헌수 / 2010 / 중고령자 노동시장 환경변화와 공적연금이 은퇴결정에 미치는 영향분석 / 국민연금연구원

[report] 방하남 / 2009 / 점진적 은퇴와 부분연금제도 연구 / 한국노동연구원

[journal] 방하남 / 2011 / 강요된 선택 : 생애 주된 일자리에서의 퇴직과 재취업의 동학분석 / 한국사회학 / 한국사회학회 45(1) : 73~108

[journal] 엄동욱 / 2008 / The Determinants of the Older's Decision to Work: Focusing on 1st Korean Retirement and Income Study / 노동정책연구 / 한국노동연구원 8(3) : 17~38

[journal] 손종칠 / 2010 / Determinants of Retirement and Retirement Satisfaction in Korea / 노동정책연구 / 한국노동연구원 10(2) : 125~153

[journal] 이성용 / 2009 / An Analysis of the Polarization of the Middle-aged and Old Worker's Employment by Age and Gender / 한국노년학 / 한국노년학회 29(2) : 593~610

[journal] 이승렬 / 2007 / The Effect of the National Pension Scheme on the Retirement Behavior of the Older Workers in Korea / 사회보장연구 / 한국사회보장학회 23(4) : 83~103

[journal] 유경미 / 2013 / Improvement issues in the national pension system for strengthening the old-age income security of women / 지역사회연구 / 한국지역사회학회 21(4) : 171~189

[confproc] 윤석명 / 2011 / 100세시대 대응을 위한 국민연금의 정책과제 / 연금포럼 42 : 40~48

[journal] 윤석명 / 2006 / A Proposal for Minimizing of Gaps in Post-retirement Income Protection System - With Special Reference to Involuntary Early Retirement - / 사회보장연구 / 한국사회보장학회 22(1) : 179~216

[journal] 이병희 / 2012 / Informal Work and Poverty / 한국사회정책 / 한국사회정책학회 19(1) : 39~63

[report] 장지연 / 2008 / 중고령자 취업 결정요인의 국가 간 비교: 한국, 미국, 스웨덴, 독일. 중고령자 노동시장 국제비교연구 / 한국노동연구원

[report] 통계청 / 경제활동인구조사 / 통계청

[report] 한국고용정보원 / 고령화연구패널조사 / 한국고용정보원

[journal] Angrist, J. / 1991 / Does compulsory school attendance affect schooling and earnings? / The Quarterly Journal of Economics 106(4) : 979~1014

[journal] Angrist, J. / 1991 / Over-identification tests in earnings functions with fixed effects / Journal of Business and Economic Statistics 9 : 317~323

[journal] Atchley, R. / 1989 / A continuity theory of normal aging / The Gerontologist 29 : 183~190

[thesis] Atiyat, M. / 2011 / Instrumental variable modeling in a survival analysis framework / doctor / The Pennsylvania State University

[book] Baltagi, B. / 1995 / Econometric analysis of panel data / Jone Wiley and Sons

[journal] Blackburn, M. / 1993 / Omitted-ability bias and the increase in the return to schooling / Journal of Labor Economics 11(3) : 521~544

[journal] Blau, D. / 2011 / Labor market rigidities and the employment behavior of older workers / Industrial and Labor Relations Review 64(3) : 464~484

[journal] Dickson, D. / 2011 / Economic returns to education: What we know, what we don’t know, and where we are going: Some brief pointers / Economics of Education Review 30(6) : 1118~1122

[report] Eschelbach, M. / 2011 / Labor supply after normal retirement age in Germany: A fourth pillar of retirement income? / BGPE

[report] Gielen, A. / 2007 / Working hours flexibility and older workers' labour supply / IZA

[journal] Gobeski, K. / 2009 / How retirees work?: Predictors of different types of bridge employment / Journal of Organizational Behavior 30(3) : 401~425

[book] Greene, W. / 2003 / Econometric analysis / Prentice-Hall

[report] Gruber, J. / 2002 / Social security programs and retirement around the world: Micro estimation / National Bureau of Economic Research

[report] Gustman, A. / 2007 / Projecting behavioral responses to the next generation of retirement policies / NBER

[journal] Hardy, M. / 1984 / Effects of education on retirement among white male wage-and-salary workers / Sociology of Education 57(2) : 84~98

[report] Haider, S. / 2001 / Elderly labor supply: Work or play? / CRR

[journal] Kim, S. / 2000 / The antecedents of bridge employment and its consequences for quality of life in retirement / The Academy of Management Journal 43(6)

[journal] Kim, H. / 2005 / The selection of partial or full retirement by older workers / Journal of Family and Economic Issues 26(3) : 371~394

[journal] Lahey, K. / 2006 / Full retirement?: An examination of factors that influence the decision to return to work / Financial Services Review 15(1) : 1~19

[journal] Maestas, N. / 2010 / Back to work: Expectations and realizations of work after retirement / Journal of Human Resources 45(3) : 718~748

[journal] McNamara, T. / 2004 / Gender, race, and retirement decisions of people ages 60 to 80: Prospects for age integration in employment / International Journal of Aging and Human Development 59(3) : 255~286

[journal] Montalto, C. / 2006 / Determinants of planned retirement age / Financial Services Review 9 : 1~17

[journal] Mundlak, Y. / 1978 / On the pooling of time-series and cross-section data / Econometrica 46(1) : 69~85

[report] Munnall, A. / 2007 / The labor supply of older Americans / CRR

[journal] Mutchler, J. / 1997 / Pathways to laborforce exit: Work transition and work instability / Journal of Gerontology: Social Sciences 52B : S4~S12

[book] OECD / 2011 / Pensions at a glance 2011: Retirement-income systems in OECD and G20 countries / OECD Publishing

[journal] Olsen, R. / 1989 / Endogenous covariates in duration models and the effect of adolescent childbirth on schooling / The Journal of Human Resources 24(1) : 39~53

[journal] Parnes, H. / 1994 / Shunning retirement: Work experience of men in their seventies and eighties / Journal of Gerontology 49(5) : S231~S239

[report] Quinn, J. / 1998 / Microeconometric analysis of the retirement decision: United States / OECD

[report] Schumidt, L. / 2008 / Taxes, wages, and the labor supply of alder Americans

[journal] Stenberg, A / 2013 / Education and retirement: Does university education at mid-age extend working life? / IZA Journal of European Labour Studies 2(16)

[journal] Webbink, D. / 2005 / Causal effects in education / Journal of Economic Surveys 19(4) : 535~560

[book] Wooldridge, J. / 2002 / Econometric analysis of cross-section and panel data / MIT Press

KJC Korea
Journal Central

Statistics

Tools

Sharing

Issue List

Citation status