Retirement decisions and option values: Their application regarding Finland, Belgium and Germany

This paper studies determinants of retirement transitions of Europeans and focuses on the impact of social security systems on retirement behaviour. The analysis uses the first 8 waves (1994-2001) of the European Community Household Panel (ECHP). Based on those survey data, option values are constructed for each sampled individual of three countries: Finland, Belgium and Germany. The overall results of the duration and probit models show that the option value, health and well-being at work have a significant impact on retirement decisions. Poor health has an important effect on retirement risk... Mehr ...