Social Inequality and the transition to retirement in Europe and the US

This study examines the transition to retirement in a comparative analysis. The intersection to retirement has been linked with diverse consequences in past research. On one side, studies find negative effects on psychological well-being of retirement due to loss of employment, social networks and stability through work life. Others present results of a positive effect connected to pension. From a life course perspective, experiences in one’s employment history might impact the transition to and the retirement period itself. I hypothesize on the individual level that transition to retirement is influenced by working life experience and quality. The transition to retirement might be easier for people with a higher socio-economic status thus high education as well as financial resources. On the other hand, the experience of unemployment or lower job placement might cause depression or a decline of life satisfaction. The Theory of Cumulative Advantages and the mechanism of scarring propose that unemployment will have a long-life effect on the career. But is the effect even sustaining in old age? How does the transition to retirement influence life satisfaction and what impact has scarring? To answer these questions I will make use of SHARE and HRS longitudinal data on well-being of seniors and their socioeconomic situation and work history. The rich variation of countries in SHARE makes it possible to compare different welfare regimes. As SHARE lacks liberal countries, I will include the US to have a more consistent picture.