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A Regression Discontinuity Evaluation of Reducing Early Retirement Eligibility in Poland

Author

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  • Komada, Oliwia

    (GRAPE)

  • Strzelecki, Pawel

    (Warsaw School of Economics)

  • Tyrowicz, Joanna

    (University of Warsaw)

Abstract

The reform introduced in Poland in 2009 substantially and abruptly reduced the number of workers eligible for early retirement. This paper evaluates the causal effects of this reform on labor force participation and exit to retirement. We use rich rotating panel from the Polish Labor Force Survey and exploit the discontinuity imposed by this reform. We find a statistically significant, but economically small discontinuity at the timing of the reform. The placebo test shows no similar effects in earlier or later quarters, but in a vast majority of specifications the discontinuity is not larger for the treated individuals, i.e. those whose occupation lost eligibility. We interpret these results as follows: the changes in the eligibility criteria were not instrumental in fostering the participation rates among the affected cohort, i.e. the immediate contribution to increased labor force participation of these cohorts is not economically large.

Suggested Citation

  • Komada, Oliwia & Strzelecki, Pawel & Tyrowicz, Joanna, 2018. "A Regression Discontinuity Evaluation of Reducing Early Retirement Eligibility in Poland," IZA Discussion Papers 11896, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11896
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    Cited by:

    1. Riphahn, Regina T. & Schrader, Rebecca, 2023. "Reforms of an early retirement pathway in Germany and their labor market effects," Journal of Pension Economics and Finance, Cambridge University Press, vol. 22(3), pages 304-330, July.
    2. Paweł A. Strzelecki, 2019. "Health, disability and labor force participation trends in Poland," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 31-53.
    3. Sonia Buchholtz & Jan Gąska & Marek Góra, 2021. "Myopic Savings Behaviour of Future Polish Pensioners," Risks, MDPI, vol. 9(2), pages 1-19, February.
    4. Regina T. Riphahn & Rebecca Schrader, 2020. "Labor market effects of early retirement reforms," Working Papers 199, Bavarian Graduate Program in Economics (BGPE).
    5. Sipei Xu & Jia Zhang, 2022. "Do Social Pensions Affect the Physical and Mental Health of Rural Children in China? An Intergenerational Care Perspective," IJERPH, MDPI, vol. 19(7), pages 1-25, March.

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    More about this item

    Keywords

    retirement age; early retirement; regression discontinuity; Poland;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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