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Working horizon and labour supply: the effect of raising the full retirement age on middle-aged individuals

Author

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  • Francesca Carta

    (Bank of Italy)

  • Marta De Philippis

    (Bank of Italy)

Abstract

This paper analyses the effects of raising the statutory full retirement age on the labour force participation of middle-aged individuals and their partners. Identification relies on a difference-in-differences setting that exploits the large heterogeneous increase in the age eligibility for retirement caused by an unexpected Italian pension reform. We detect a sizeable increase in the participation rate of middle-aged women that spills over into their husbands' labour supply, who choose to postpone their retirement decision.

Suggested Citation

  • Francesca Carta & Marta De Philippis, 2021. "Working horizon and labour supply: the effect of raising the full retirement age on middle-aged individuals," Temi di discussione (Economic working papers) 1314, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_1314_21
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    References listed on IDEAS

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    Cited by:

    1. Atav, Tilbe & Jongen, Egbert L. W. & Rabat, Simon, 2021. "Increasing the Effective Retirement Age: Key Factors and Interaction Effects," IZA Discussion Papers 14150, Institute of Labor Economics (IZA).
    2. De Polis, Andrea & Delle Monache, Davide & Petrella, Ivan, 2020. "Modeling and Forecasting Macroeconomic Downside Risk," CEPR Discussion Papers 15109, C.E.P.R. Discussion Papers.
    3. Francesco D'Amuri & Marta De Philippis & Elisa Guglielminetti & Salvatore Lo Bello, 2021. "Natural unemployment and activity rates: flow-based determinants and implications for price dynamics," Questioni di Economia e Finanza (Occasional Papers) 599, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    family economics; labour supply; retirement;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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