Labour Mobility and Retirement

Public and private pensions represent the main income source of Europeans in their old age. Pension provisions depend on workers’ career: workers retiring under the same pension regime might receive very different pension benefits depending on the time pattern of employment and unemployment spells, on the magnitude and the timing of income shocks and, more generally, on the age-profile of earnings (Boeri and Brugiavini 2009). Individuals are often induced to retire early, but inadequate contributions due to a short work history may reduce household’s welfare later in life (Angelini et al. 2009). Previous work has shown great variability in the patterns of transition from work to retirement (Peracchi and Welch 1994; Brugiavini and Peracchi 2005; Brugiavini et al.