Research

Abstract:

I study the effect of job loss on labor supply and spousal labor supply for older workers using a quasi-experimental research design and high-quality Danish administrative data. Job loss has a negative effect on earnings and employment for all age groups, but older workers are the most affected in the short run. Displaced workers aged 60 to 64 at the time of job loss earn 34% less and are 19 percentage points more likely to be on early retirement benefits one year after job loss. Job loss also affects family members. I find that while younger partners increase their labor supply following job loss, older partners decrease their labor supply and are more likely to retire.

Abstract:

We analyze how pension wealth influences retirement timing using 25 years of Danish administrative panel data on wealth and labor market status. Exploiting early-career variation in firm-specific mandatory pension contribution rates, we study labor supply decisions from age 55 onward. Greater pension wealth accelerates labor market exit: at age 63, the elasticity is about 0.3—an additional 100,000 DKK (15,000 USD) at age 55 reduces earnings by 1% at age 63. Effects intensify near statutory retirement age, driven by self-support and early occupational pension withdrawals. Mandatory savings raise retirement wealth but induce earlier exit, underscoring key behavioral responses for pension policy design.

Abstract:

This paper estimates the effect of a reform-induced increase in the early retirement age (ERA) on labor supply, health, and healthcare utilization using detailed Danish administrative data and a regression discontinuity design. We show that while raising the ERA successfully increased employment, it also led to spillovers into other public transfers and increased the number of self-supporting individuals. We find that the increased ERA led to small and insignificant effects on GP visits and the use of painkillers, as well as borderline significant, small positive effects on the use of antidepressants and CVD medicine. Further analysis shows that individuals who were employed due to the reform had lower pre-reform income and wealth, while the individuals who were not employed despite being affected by the reform were characterized by worse health before the reform announcement. We argue that possibilities for exiting employment serve as a potentially important mitigating mechanism for health and healthcare utilization effects by sorting vulnerable individuals out of employment.

Abstract:

We analyze administrative and genetic data from over 200,000 Danes to study the effects of genetic risk for Alzheimer's Disease (AD) on labor market outcomes. Higher AD genetic risk increases dementia diagnoses and GP visits for both genders. Among women aged 45–65, it reduces labor participation and raises disability pension uptake, especially near retirement. These effects weaken for women with high polygenic scores for education. For men, AD genetic risk shows no employment impact. These gender differences align with evidence that AD genetic markers are more predictive in women.