Literature on early retirement has generally ignored firms' role in the labour market withdrawals. Yet, as it is shown in this paper, employee incentives alone cannot explain the increase in unemployment at the end of the career. Instead, we construct an implicit contracts model where we account...

Disability pension benefits are governed by an application-approval procedure. Therefore, explanatory variables can have different effects on the application probability and on the actual disability transition probability. If the application phase is not considered, the estimation ignores the...