EUROPEAN PAPERS ON THE NEW WELFARE

Part-Time Pensions and Part-Time Work in Sweden

How large is the share of those who would have continued to work to the same extent in the absence of the part-time system? Sundén (1994) analyzed the choice the individual would have made in the absence of the part-time pension system using data from the Level of Living Surveys (LNU) from 1974 and 1981 supplemented with register data. Her results indicate that the part-time pension system has reduced both the number of people who work full-time and the number of those who leave the labour market before reaching the ordinary retirement age (mainly by the disability pension system). The change from full-time work (until ordinary retirement age) to part-time work is the most frequent change for men (56.59% of the men taking up part-time pension) but not for women (42.39% of the women taking up a part-time pension). In both cases the values are below the percentages calculated above. It indicates that the number of hours worked increases as a result of the part-time pension system. However, note that the calculations build on information from the different decades and the pattern may have changed from the 1980s to the 1990s. As Sundén stresses, it would also be very interesting to use the later waves of the Level of Living Surveys (from 1991 and 2000).
The analysis is further developed in Table 10. We estimate the change in the average number of hours worked by using the information on the hours worked before and after being part-time pensioned, and the values from Sundén (1994) about the alternative employment status if the part-time pension system had not existed. Both the positive effect (working part-time instead of being full-time retired) and the negative one (a reduction of the working time) are in that way included. The table shows that the average number of working hours per part-time pensioned increases by 4-5 hours. The number is considerably higher for women (8.2-9.0 hours) than for men (1.4 -2.3 hours). The total effect also depends on the number of people who take up a part-time pension, and the number of part-time pensioners was considerably higher in 1994 than in 1991. The effect in 1991 was close to 6.7 million working hours and in 1994 almost 10.6 working hours.

Table 10: Estimated effect on the number of hours worked per person with part-time pension given that 56.59% of the male and 42.39% of the female part-time pensioners would have continued to work the same number of hours (in most times full-time work) before getting the pension and otherwise would not have worked

wande-tabella10_eng.gif
Source: Calculated by using information from Sundén (1994) regarding the shares who would have continued to work to the same extent if not getting a part-time pension and from Table 9 regarding the number of hours worked before and after getting a part-time pension.
Note. The number of work-weeks is assumed to be 45 in a year (52 weeks minus vacation and public holidays).

To conclude: the effect of the part-time pension system is an increase in the number of hours worked in the economy, especially among women. It should be underlined that it is important to continue studies in the field by using databases that contain more individuals and cover a longer time period.


Pages: 1 2 3 4 5 6 7 8 9 10 11


Tags: , ,