Early retirement from the labour market among immigrants and natives: A register-based study of Norway

Abstract

This study investigates early exit from the labour market among natives and immigrants in Norway, and to what extent this be explained by push, pull, or other factors. To answer these questions, we use high-quality Norwegian register data that contain information on the entire resident population of Norway for the period from 1992 to 2015. We estimate transition rate models in a competitive risk framework. The analyses show that natives have a much higher labour force participation rate than immigrants when they are 50 years old. However, for those in the labour force, the exit rates are higher among Norwegian-born individuals. There are differences concerning which exit routes the groups follow. The analyses indicate that both push and pull mechanisms are active and that institutional and family factors are essential. Early retirement should not be seen as a voluntary choice before the end of working life.