Impact of Early Retirement Incentives on Labour Market Participation: Evidence from a Parametric Change in the Czech Republic
AbstractWe 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 we find that a reduction in early retirement benefits by 2â€“3% leads to approximately the same decrease in the probability of being inactive. Our finding implies high elasticity of older male workersâ€™ 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.
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Bibliographic InfoPaper provided by Czech National Bank, Research Department in its series Working Papers with number 2009/7.
Date of creation: Dec 2009
Date of revision:
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Czech Republic; early retirement; labor market participation.;
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
This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-03-20 (Economics of Ageing)
- NEP-ALL-2010-03-20 (All new papers)
- NEP-LAB-2010-03-20 (Labour Economics)
- NEP-TRA-2010-03-20 (Transition Economics)
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