Financial incentives to postpone retirement and further effects on employment -- Evidence from a natural experiment
AbstractThis paper examines the effect of the introduction of permanent benefit reductions for early retirees (i) on the duration until benefit claiming and (ii) on the duration until exit from gainful employment. I estimate discrete time duration models using different error term specifications. Administrative data containing the full earnings history of the individuals are used. Since the reform implementing the benefit reductions was a natural experiment, under some assumptions a causal effect can be identified. The permanent reduction of retirement benefit amounts causes a postponement of claiming benefits by about 14Â months and a delay of employment exit by about 10Â months on average.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 17 (2010)
Issue (Month): 3 (June)
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Retirement insurance Labor force participation Natural experiment;
Other versions of this item:
- Barbara Hanel, 2008. "Financial Incentives to Postpone Retirement and Further Effects on Employment - Evidence from a Natural Experiment," Working Papers 054, Bavarian Graduate Program in Economics (BGPE).
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
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- Hanel, Barbara & Riphahn, Regina T., 2012.
"The timing of retirement — New evidence from Swiss female workers,"
Elsevier, vol. 19(5), pages 718-728.
- Barbara Hanel & Regina T. Riphahn, 2012. "The Timing of Retirement - New Evidence from Swiss Female Workers," CESifo Working Paper Series 3814, CESifo Group Munich.
- Bender, Keith A. & Mavromaras, Kostas G. & Theodossiou, Ioannis & Wei, Zhang, 2014. "The Effect of Wealth and Earned Income on the Decision to Retire: A Dynamic Probit Examination of Retirement," IZA Discussion Papers 7927, Institute for the Study of Labor (IZA).
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