Interregional Differentiation of the Age of Exit from the Labour Market in Russia

Abstract

Retirement age is one of the most important characteristics of older people employment and retirement behaviour. Since the mid-1990s, the effective retirement age has been used to estimate the age of exit from the labour market of older workers. In the context of significant socio-economic differentiation of Russian regions, this parameter should be assessed not only at the national, but also at the regional level. The article presents estimates of the age of exit from the labour market (effective retirement age) in Russian regions for 2010-2019, as well as identifies the factors determining its interregional differentiation. For the first time, the effective retirement age and its determining factors were assessed using Russian data. In particular, Labour Force Survey and regional statistics were analysed. To calculate the effective retirement age, both static and dynamic approaches were applied; econometric modelling was used to identify its determinants. The study revealed that in 2019 the age of exit from the labour market was 62.4 years for men and 60.2 years for women. The effective retirement age for Russian men and women is higher than the normal retirement age in the country, but is lower than the average of most OECD countries. For the period 2010-2019, the age of exit from the labour market remained practically unchanged for men, while it slightly increased for women (by 0.7 years). The age of exit from the labour market is characterised by a fairly significant and stable regional differentiation. The determinants of the effective retirement age are the northern status of a region, the relative level of pensions in the region (the ratio of the average pension to the average wage), the share of employees with higher education.