Empirical Analysis of Disable People Early Retirement Decision in Benelux:Using Data from Cross-national Data Center in Luxembourg

With an increasing number of disabled people in society, some of them choosing early retirement from the labor market. Meanwhile, labor forces become less in the labor market. In this paper, I choose cross-section dummy samples from Benelux Area - Belgium, the Netherlands and Luxembourg - as research objects. From data analysis, we find in Benelux Area, especially in Belgium and the Netherlands, incomes of paid employed disability are lower than social security benefits and social disability benefit. From empirical analysis through marginal effect of Probit regression, though there are also several limitations of these marginal effect, such as limitation number of variables. However, we cannot totally avoid endogenous problem. As a result, social security income and age have statistically highly significant effect on early retirement decision in most dataset. Other independent variables, like education, marital status and the number of children are sometimes have a significant impact on early retirement decision of disabled people.