Despite rising life expectancy and pressure to reform pension systems, the average working time in old age is decreasing. Our analysis of panel data from the German Ageing Survey (DEAS) shows that subjective age – which indicates how old a person feels – has a significant influence on how time is spent during working life. Those who feel subjectively younger reduce their working hours in favour of leisure time, regardless of income or health. Subjective age thus functions as a behaviourally relevant signal beyond chronological age and helps explain why people retire from working life earlier despite better health. The results suggest that social ageing processes should be addressed with greater flexibility in work arrangements.
© 2025 Andre Briviba, Valentin Schnellmann, Bruno S. Frey, published by ZBW – Leibniz-Informationszentrum Wirtschaft
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