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 retirement entry 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, a true causal effect can be identified. The permanent reduction of retirement benefit amounts causes a postponement of retirement entry by about fifteen months and a delay of employment exit by about nine months on average.
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Bibliographic InfoPaper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 054.
Length: 35 pages
Date of creation: May 2008
Date of revision:
retirement insurance; labor force participation; natural experiment;
Other versions of this item:
- Hanel, Barbara, 2010. "Financial incentives to postpone retirement and further effects on employment -- Evidence from a natural experiment," Labour Economics, Elsevier, vol. 17(3), pages 474-486, June.
- 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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