Article

Working environment shown to play role in early retirement

Since the Labour Market Commission (Arbejdsmarkedskommissionen [1]) thematised early retirement from the labour market, the issue has been widely debated and analysed. The Labour Market Commission was set up in December 2007 to propose initiatives to permanently increase employment, while tackling the challenge of demographic change. A particular challenge is the ageing of the workforce, which is expected to result in a decrease in labour supply and employees’ working time [2], as well as putting pressure on public finances (see also the Foundation Findings [3] on Demographic change and social services [4]).[1] http://www.amkom.dk/in-english.aspx[2] www.eurofound.europa.eu/ef/observatories/eurwork/industrial-relations-dictionary/working-time[3] www.eurofound.europa.eu/ef/search/node/publications OR bytype OR foundationfindings2008?oldIndex[4] www.eurofound.europa.eu/ef/publications/foundation-finding/2009/undefined/foundation-findings-demographic-change-and-social-services

A recent study confirms that the working environment plays a substantial role in the take-up of early retirement. The study, which examines the relations between working environment factors and early retirement, also uncovers considerable gender differences regarding the impact of working conditions on early retirement. However, neither the working environment nor other external factors fully explain why people opt for early retirement.

Background to study

Since the Labour Market Commission (Arbejdsmarkedskommissionen) thematised early retirement from the labour market, the issue has been widely debated and analysed. The Labour Market Commission was set up in December 2007 to propose initiatives to permanently increase employment, while tackling the challenge of demographic change. A particular challenge is the ageing of the workforce, which is expected to result in a decrease in labour supply and employees’ working time, as well as putting pressure on public finances (see also the [Foundation Findings](/search/node/publications OR bytype OR foundationfindings2008?oldIndex) on Demographic change and social services).

Against this background, the Labour Market Commission asked the Danish National Centre for Social Research (Det Nationale Forskningscenter for Velfærd, SFI) to prepare a report surveying the results of recent research on the links between working environment factors and early retirement. The report presents the results obtained from nine studies conducted between 2007 and 2009. All of the nine studies are based on data from the [Danish Work Environment Cohort Study (DWECS) (in Danish)](http://www.arbejdsmiljoforskning.dk/Nationale Data/NAK2005.aspx), a national working conditions survey (see DK0701019D and DK0312SR01) linked to registered information on payment of early retirement pensions (‘DREAM register’).

Influence of working environment on early retirement

Four of the nine studies calculate the etiological or causal significance of various working environment factors in terms of their influence on the take-up of early retirement. In this instance, the etiological fraction measures the proportion of new cases of early retirement occurring during a certain follow-up time period attributable to the exposure of interest – which in this case is the working environment.

The data presented in Table 1 indicate the percentage of early retirement cases that would have been prevented if overall risk exposure was as low for the total population as for the persons least exposed. Only factors that were found to have a statistically significant impact on early retirement are shown.

Regarding psychosocial work factors, the factors low job decision latitude and a low degree of variation in the job have been identified as contributors to early retirement. In terms of physical work factors, a reduced prevalence of monotonous, repetitive work and physically demanding work would decrease the prevalence of early retirement. In addition, skin contact with cleaning agents and disinfectants as well as smoking account for excess early retirement. Regarding a worker’s weight, being overweight does not seem to have an impact on early retirement, whereas being underweight appeared to be related to early retirement in the case of women (data not shown).

Table 1: Etiological fractions of risk factors for early retirement, by gender (%)
  Men Women
Psychosocial factors (2008)
Low job decision latitude 10 13
Low variation in the job 14 15
Physical factors (2009)
Monotonous, repetitive work 14 23
Physically demanding work 22 38
Chemical factors (2009)
Skin contact with cleaning agents/disinfectants 8
Lifestyle factors (2009)
Smoking 16 20

Notes: Only statistically significant findings are shown. Results for the four groups of factors cannot be compared as they have been calculated separately.

Risk factors were controlled for the impact of: Psychosocial factors: age, smoking, body mass index (BMI), physically demanding work, working with arms above shoulders and kneeling work posture; Physical factors: age, smoking, BMI and psychosocial factors; Chemical factors: age, BMI, smoking and physical factors; Lifestyle factors: age, self-rated health and psychosocial and physical factors.

Source: SFI, 2009

Apart from studies assessing the etiological fraction, five other studies have also documented the likelihood of early retirement as related to working environment factors (Table 2). These studies are based on DWECS data in terms of registered information. The data focus on the impact of the working environment in general, along with shift work, job satisfaction, sickness absence and occupational accidents respectively.

In the case of female employees, an increased risk of early retirement is associated with low social support, low skill discretion, job insecurity, standing while working, shift work, low job satisfaction and the level of absenteeism from work. With regard to men, on the other hand, only standing posture at work and a high level of sickness absence may predict early retirement.

Table 2: Factors associated with risk of early retirement, by gender
  Men Women
Psychosocial factors   Low social support Low skill discretion Job insecurity
Physical factors Standing at work Standing at work
Shift work   Shift work
Job satisfaction   Low job satisfaction
Sickness absence More than 6 days of absence More than 6 days of absence
Accidents Accidents  

Notes: Risk factors were controlled for the impact of: Psychosocial and physical factors: age, civil status, number of children living at home, socioeconomic status of partner, social group, smoking, BMI and sector of employment (public/private); Shift work: age, social group, self-rated health, smoking, BMI and physical working environment exposures; Job satisfaction: age, smoking and BMI; Sickness absence: age, social group, smoking, BMI, and nine psychosocial and physical working environment exposures; Accidents: age, smoking, BMI, body postures and physical demands.

Source: SFI, 2009

Commentary

As the results of the nine studies show, early retirement is related to working environment factors. Moreover, women are more affected by working conditions than men. None of the nine studies explains the reasons for this. However, seemingly unaccountable gender differences in the sickness and health of men and women is a well-known phenomenon and recognised as a complex issue in epidemiologic research (see, for example, the study on Health and mortality in men and women – a paradox (117Kb PDF in Danish); English summary also available). The gender differences exemplified by these findings may reflect the complex interplay of biological (hormonal, immunological, genetic), behavioural (risk and sickness behaviour in general) and social (roles and self-perception) causes. Nevertheless, the assumption that working conditions may have a significant impact on early retirement remains valid.

Rune Christiansen and Helle Ourø Nielsen, Oxford Research

Eurofound recommends citing this publication in the following way.

Eurofound (2009), Working environment shown to play role in early retirement, article.

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