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Does outlawing mandatory retirement reduce public-pension benefit claim?

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  • Insook Lee

Abstract

Exploiting the 2011 abolishment of the mandatory-retirement provision that had allowed employers to force retirement of their 65-or-older employees in the UK, this paper estimates the effect of outlawing mandatory retirement on public-pension benefit claim behaviour of the elderly through changing their employment and retirement rates. Abolishing mandatory retirement raises public-pension claim rate of non-household-head benefit-eligible individuals by making them retire more, while it lowers public-pension claim rate of household-head benefit-eligible individuals by lowering their retirement rate. On the other hand, the abolishment raises full-time employment rate of the elderly, regardless of household-head status or gender.

Suggested Citation

  • Insook Lee, 2021. "Does outlawing mandatory retirement reduce public-pension benefit claim?," Applied Economics, Taylor & Francis Journals, vol. 53(20), pages 2322-2336, April.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:20:p:2322-2336
    DOI: 10.1080/00036846.2020.1859452
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