An increasing life expectancy necessitates prolonged workforce participation. However, motivations for post-retirement employment vary. Financially secure retirees may work for personal fulfilment, social engagement, and societal relevance. Conversely, those with a lower socioeconomic status often undertake bridge jobs to mitigate poverty risk. The increasing vulnerability to poverty among older individuals further incentivizes prolonged employment. In Lithuania, the proportion of employed old-age pension recipients has remained relatively stable (12% in 2018 and 13% in 2024). Previous research (Zitikytė 2019) identified factors influencing bridge employment: a longer retirement record, higher pre-retirement wages, and residence in urban areas positively correlated with continued employment. In contrast, higher sickness rates, greater pension benefits, and prior unemployment benefits discouraged such employment. However, sectoral differences remain underexplored.
This paper examines how employment in various economic sectors influences post-retirement labor participation. By using unique administrative data from Lithuania, it investigates sector-specific employment patterns. This study hypothesizes that individuals retiring from high-skilled or public sector occupations are more likely to remain active in the labor force after retirement, while those from manufacturing, trade, and transport sectors are more likely to exit the labor market upon reaching the statutory retirement age.
Binary probability models assess the likelihood of post-retirement employment across sectors. The findings elucidate sectoral variations in workforce retention among older individuals. These insights inform targeted policy strategies to enhance employment opportunities for retirees, thereby addressing demographic and economic challenges associated with an aging workforce.
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