9.4 The choice between full- and part-time work
The decision to work rather than retire can be broken down into two stages. The first is whether the person chooses to be in the labour force at all; the second, having decided that they will be in the labour force, the subsequent decision is that of working full- or part-time.
Given that a person is employed, what factors are associated with their choice to work either full- or part-time? To analyse this, a logit regression model was estimated with a binary dependent variable set at 1 = full-time and 0 = part-time, and restricting the sample to those who were employed (as distinct from seeking employment). In broad measure the results (Table 9-8) were similar to those reported in Table 9-5 and Table 9-6. The notable exception was the health measures. The probability that a person in the workforce would chose full-time employment was not significantly related to either the physical or mental health scores. While physical health status has a significant effect on whether to work or retire, the evidence is that, given a person is employed, their choice about full- or part-time work is not a function of their health status.
| Variable | Male | Female |
|---|---|---|
| Physical health | ns | ns |
| Mental health | ns | ns |
| Age | --- | --- |
| Main urban | ns | + |
| Tertiary education | - | ns |
| Māori | ns | +++ |
| Separated | ns | +++ |
| Widowed | ++ | ++ |
| Married with working spouse | +++ | ns |
| Receiving a benefit | --- | --- |
| Receiving NZ Super | --- | -- |
| Receiving other superannuation | --- | -- |
| Has a super scheme | ns | +++ |
| No. of dependants | +++ | ++ |
| Income of other members of household | --- | ns |
Notes:
1 ns = not significant at the 10% level; ++ = significant at the 5% level; +++ = significant at the 1% level.
2 Complete results are given in Appendix Table C.18.
Both males and females have a lower probability of working full-time as they age, receive a benefit or have income from superannuation. In contrast they are more likely to be in full-time employment if they are widowed or have dependants. For men, having a working spouse increases the probability of working full-time (compared to having a non-working spouse), and having a tertiary education or higher income from other household members decreases their probability. For females, they are more likely to be in full-time employment if they are Māori, are separated or have a superannuation scheme.
The phasing of retirement has been documented in a survey conducted by the Equal Employment Opportunities Trust of workers in New Zealand aged between 45 and 64 (2006). Almost 50% of those surveyed chose doing part-time work as their ideal transition to retirement. Finances and health were given as the two most prevalent factors affecting the decision when to retire.
