Working Hours Flexibility and Old Workers’ Labour Supply

This paper studies the presence of hours constraints on the UK labor market and its effect
on elderly labor force participation using panel data for the period 1991-2004. We find
that working hours constraints force old female workers to retire at once rather than retire
gradually, while old male worker are more able to reduce the number of working hours
within their current job. As a result, over-employed female workers retire about one year
earlier than their unconstrained colleagues. Although, increasing working hours flexibility
may prolong female working lives, net elderly female labor supply decreases when hours
flexibility is enhanced.