Retirement varies by origin

The figure shows the share of people born in different parts of the world who have left the working life in Sweden at different ages, among those who were employed at the age of 50. The proportion of retirees increases earlier among individuals with origins in Africa, Asia, and Eastern Europe. At the age of 60, the share retired is 10 percent among natives, but 20 percent among those from Africa and Asia, and slightly higher among those born in Eastern Europe. This indicates that the exit from the labor market often begins earlier for these groups.

When most workers retire at the age of 64–65, the difference between native-born and foreign-born decreases significantly.

Some groups of foreign-born individuals are less likely to follow the established norm of retiring at 65. Among those working after 60, there is therefore an increased likelihood of continuing after the age of 65.

The differences between native-born and foreign-born cannot be explained by level of education or family situation. However, health, type of occupation, and work history can provide important clues. The results of the study suggest that economic constraints and opportunities are important explanations, rather than individual preferences.

Retirement is defined here as not being observed in work again before the age of 70. The exit from the labor market can occur in various ways: through retirement, sick leave, early retirement, or unemployment.

Source: Olof Åslund, Fredrik Larsson, and Lisa Laun (2023) ”Joining late, leaving early? Immigrant-native disparities in labor market exit.” Working paper 2023:15. IFAU.

Read the report here

Source: Fredrik Larsson, Lisa Laun och Olof Åslund (2023) ”Kommer sent, lämnar tidigt? Invandrades utträde från arbetsmarknaden.” Rapport 2023:11. IFAU.

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