Retirement and Participation of Elderly Women in Labor Market Case Study of Tehran

Unlike the global trends, there is a low rate for women participating in the labor market of Iran. Making decision on retirement and the willingness to work after the middle age are among important factors influencing women's participation in the labor market. This paper examines factors affecting retirement and participation of the elderly women in the labor market of Tehran. This is a survey-research study.Based on the results of cross-sectional data analysis of Tehran in 2008, over 55 percent of women in the statistical sample had retired early and nearly 20 percent of them had been re-employed after retirement. The participation rate of women in retirement and in the old age period is very low. Based on Logit regression model, higher the retirement age of women lower the chance of their post-retirement participation in the labor market. In other words, for women in contrast with men it is more desirable to retire early and leave the labor market. Women’s illness or those of their husbands have increases the possibility of women’s leaving the labor market. On the other hand, women with higher education and expertise wish to stay longer in the labor market during their mid-age years and thereafter. Moreover, being married and considering the rise in living expenses increase the likelihood of women’s participation in the labor market.