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A regression discontinuity evaluation of reducing early retirement eligibility in Poland

Author

Listed:
  • Oliwia Komada

    (Group for Research in Applied Economics (GRAPE))

  • Pawel Strzelecki

    (Narodowy Bank Polski
    Instytut Statystyki i Demografii)

  • Joanna Tyrowicz

    (Group for Research in Applied Economics (GRAPE)
    University of Warsaw
    Institut für Arbeitsrecht und Arbeitsbeziehungen in der Europäischen Union (IAAEU)
    Institute of Labor Economics (IZA))

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

  • Oliwia Komada & Pawel Strzelecki & Joanna Tyrowicz, 2018. "A regression discontinuity evaluation of reducing early retirement eligibility in Poland," GRAPE Working Papers 30, GRAPE Group for Research in Applied Economics.
  • Handle: RePEc:fme:wpaper:30
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    References listed on IDEAS

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    Cited by:

    1. Regina T. Riphahn & Rebecca Schrader, 2020. "Labor market effects of early retirement reforms," Working Papers 199, Bavarian Graduate Program in Economics (BGPE).
    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, Open Access Journal, vol. 9(2), pages 1-19, February.

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    Keywords

    privatization; rushed privatization; efficiency; firm size; employment; performance;
    All these keywords.

    JEL classification:

    • P45 - Economic Systems - - Other Economic Systems - - - International Linkages
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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