Understanding the Importance of Work Histories in Determining Poverty in Old Age: Variables Derived from the English Longitudinal Study of Ageing, 2002-2007

Abstract copyright UK Data Service and data collection copyright owner.This study contains variables derived from the English Longitudinal Study of Ageing (ELSA). The main ELSA study is held at the UKDA under SN 5050. The project consisted of a six-month ESRC User Fellowship (awarded to Malcolm Nicholls of the Department for Work and Pensions), examining factors leading to income poverty in old age, focusing on the influence of work histories and other life course factors. While much is known about the income position of current pensioners and the characteristics of those on low incomes, there is relatively little evidence about the life experiences which lead to these outcomes. The research that exists suggests that such events may have less of an impact on low income in later life than has generally been assumed. This may be because of the role of the state in protecting people against disrupted and interrupted work histories. The lack of research in this area in the UK reflects, in part, the limited availability of suitable longitudinal datasets. The life history data collected in the ELSA study was used to investigate how far low incomes in retirement are associated with people's work, partnership, parenting and health experiences once the role of the state is taken into account. This study found that for the most part life-course events as measured here are not strongly associated with the chances of being on a low income in retirement. Low income risks, however, are typically best explained by a range of individual characteristics, many of which - such as social class and education - reflect circumstances or events earlier in a person's life. It appears that, while some aspects of an individual's life course do have a lingering impact on later life incomes, the direct effect of other life history variables for individuals is mitigated by the operation of state pensions and other benefits, and for women, by the role of marriage. The results of the study will help to inform the development of policy, by providing a better understanding of the causes of low income in old age. Users are also advised to consult the main ELSA data and documentation (SN 5050). Further information may be found on the project's ESRC award and UPTAP web pages. Main Topics:Topics covered include length of time spent in paid work and in marriage, the timing of retirement, the number of children and timing of childbirth, and whether ill-health as an adult or as a child had been experienced. The modelling looks at the influence of these factors alongside a range of other characteristics such as social class and educational attainment