The Impact of Early Retirement Incentives on Labor Market Participation: Evidence from a Parametric Change in the Czech Republic
AbstractThe authors investigate the impact of a change in the Czech early retirement scheme on the labor force participation of older male workers. Using the difference-in-differences method they find that a reduction in early retirement benefits by 2–3% leads to significant decrease in the probability of being inactive for eligible individuals. The effect for individuals who are on the margin of eligibility for early retirement is much stronger than that for an average eligible individual. The authors´ finding implies high elasticity of older male workers’ participation rate. The public policy implication is that a reduction in early retirement benefits can serve as a very effective tool to increase the participation of older men in the Czech labor market.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.
Volume (Year): 61 (2011)
Issue (Month): 5 (November)
early retirement; labor market participation; Czech Republic;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stock, James H & Wise, David A, 1990.
"Pensions, the Option Value of Work, and Retirement,"
Econometric Society, vol. 58(5), pages 1151-80, September.
- Stock, J.H. & Wise, D.A., 1988. "Pensions, The Option Value Of Work, And Retirement," Working Papers e-88-28, Hoover Institution, Stanford University.
- James H. Stock & David A. Wise, 1988. "Pensions, The Option Value of Work, and Retirement," NBER Working Papers 2686, National Bureau of Economic Research, Inc.
- Baker, Michael & Benjamin, Dwayne, 1999. "Early Retirement Provisions and the Labor Force Behavior of Older Men: Evidence from Canada," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 724-56, October.
- Courtney Coile & Jonathan Gruber, 2007. "Future Social Security Entitlements and the Retirement Decision," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 234-246, May.
- Jan Babecky & Kamil Dybczak, 2009. "The Impact of Population Ageing on the Czech Economy," Working Papers 2009/1, Czech National Bank, Research Department.
- Alan B. Krueger & Jorn-Steffen Pischke, 1991.
"The Effect of Social Security on Labor Supply: A Cohort Analysis of the Notch Generation,"
NBER Working Papers
3699, National Bureau of Economic Research, Inc.
- Krueger, Alan B & Pischke, Jorn-Steffen, 1992. "The Effect of Social Security on Labor Supply: A Cohort Analysis of the Notch Generation," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 412-37, October.
- Jonathan Gruber & David A. Wise, 2002.
"Social Security Programs and Retirement Around the World: Micro Estimation,"
NBER Working Papers
9407, National Bureau of Economic Research, Inc.
- Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1, December.
- Christian Brinch & Erik Hernæs & Steinar Strøm, 2001.
"Labour Supply Effects of an Early Retirement Programme,"
CESifo Working Paper Series
463, CESifo Group Munich.
- Brinch, Christian & Hernæs, Erik & Strøm, Steinar, 2002. "Labour Supply Effects of an Early Retirement Programme," Memorandum 33/2001, Oslo University, Department of Economics.
- Libor Dušek & Juraj Kopecsni, 2008.
"Policy Risk in Action: Pension Reforms and Social Security Wealth in Hungary, Czech Republic, and Slovakia,"
Working Papers IES
2008/09, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jun 2008.
- Libor Dušek & Juraj Kopecsni, 2008. "Policy Risk in Action: Pension Reforms and Social Security Wealth in Hungary, Czech Republic, and Slovakia," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 58(07-08), pages 329-357, Oktober.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lenka Herrmannova).
If references are entirely missing, you can add them using this form.