Employment Status, Quality of Matching, and Retirement in Korea: Evidence from Korean Longitudinal Study of Aging.

This paper explores the differing probabilities of retirement for self-employed and wage-and-salary workers. It finds self-employed workers are less likely to retire than wage-and-salary ones, and that differences in retirement incomes, health, productivity, job characteristics, and compulsory retirement practices do not explain the disparity. The difference between self-employed and wage-and-salary workers in the quality of matching between the job and the worker (i.e., between required and desired amount of work) explains the later retirement of the self-employed. We note the implications of these findings for labor-force participation at older ages and how policies might boost employment of the elderly.