Abstract
This paper uses aggregate Labour Force Survey (LFS) data across 33 European countries to examine recent trends in overall inactivity rates and in health-related inactivity rates for males and females aged 50–64 years. In most countries, the trend increase in male inactivity rates has reversed and labour force participation rates of older men have now generally been growing since the early to mid-1990s. For women, there has been a continuation of the existing upward trend in participation rates. The upward trend in male rates of health-related inactivity has also reversed in around one-third of countries—generally those with the previously highest levels—but has continued to rise in others. Most countries have also seen rising female rates of health-related inactivity. The paper therefore presents some simple time-series, cross-section regression analysis that suggests institutional factors, most notably the standard public pension replacement rate, have played a role in driving these trends.
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