Abstract
Recent literature makes a distinction between voluntary and involuntary early retirement, where involuntary early retirement results from employment constraints rather than from a preference for leisure relative to work. This paper analyzes voluntary and involuntary early retirement based on international microdata covering 19 industrialized countries. The results show that involuntary early retirement is particularly widespread in Continental Europe. Countries facing economic recessions and having strict employment protection legislation have higher shares of involuntary retirements among early retirees. Generous early retirement provisions of the social security system do not only make voluntary early retirement more attractive for individuals, but also induce firms to push more employees into early retirement.
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