Expected Lifetime in Different Employment Statuses: Evidence From the Economic Boom-and-Bust Cycle in Spain.

Abstract

This article analyses the impact of the recent economic crisis on the expected time spent in different employment statuses in Spain. Using data from the Economically Active Population Survey and life tables, we estimate the expected time in work, unemployment, retirement, and other types of economic inactivity during the economic boom-and-bust cycle. Differences in expected years of life spent in different employment statuses are decomposed into effects of mortality and employment behavior. Our results show that men's working life expectancy is much more exposed to economic fluctuations. The impact of the ebbs and flows of the business cycle among women is mitigated by the long-term female trend of growing participation in the labor market associated with the increasing educational attainment of women. In addition, the improvement in mortality only partially contributes to gains in time spent in each status, while the main effects correspond to changes in labor market participation.