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The Effect of Firms' Partial Retirement Policies on the Labour Market Outcomes of Their Employees

Author

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  • Huber, Martin

    (University of Fribourg)

  • Lechner, Michael

    (University of St. Gallen)

  • Wunsch, Conny

    (University of Basel)

Abstract

In this paper, we assess the impact of firms introducing part-time work schemes for gradual labour market exit of elderly workers on their employees' labour market outcomes. The analysis is based on unique linked employer-employee data that combine high-quality survey and administrative data. Our results suggest that partial or gradual retirement options offered by firms are an important tool to alleviate the negative effects of low labour market attachment of elderly workers in ageing societies. When combined with financial incentives to hire unemployed or young jobseekers as replacement, they seem to be particularly beneficial, especially when labour market conditions are difficult. Under such circumstances, they can even have positive spill-over effects on younger workers. Firms should thus be encouraged to offer such schemes.

Suggested Citation

  • Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The Effect of Firms' Partial Retirement Policies on the Labour Market Outcomes of Their Employees," IZA Discussion Papers 7513, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7513
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    References listed on IDEAS

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    Cited by:

    1. Börsch-Supan, A. & Härtl, K. & Leite, D.N., 2016. "Social Security and Public Insurance," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 781-863, Elsevier.
    2. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    3. Lorenz, Svenja & Pfister, Mona & Zwick, Thomas, 2018. "Identification of the statutory retirement dates in the Sample of Integrated Labour Market Biographies (SIAB)," FDZ Methodenreport 201808_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Börsch-Supan, Axel & Härtl, Klaus & Leite, Duarte & Ludwig, Alexander, 2018. "Endogenous retirement behavior of heterogeneous households under pension reforms," SAFE Working Paper Series 221, Leibniz Institute for Financial Research SAFE.
    5. Berg, Peter B. & Hamman, Mary K. & Piszczek, Matthew & Ruhm, Christopher J., 2015. "Can Policy Facilitate Partial Retirement? Evidence from Germany," IZA Discussion Papers 9266, Institute of Labor Economics (IZA).
    6. Muriel Dejemeppe & Catherine Smith & Bruno der Linden, 2015. "Did the Intergenerational Solidarity Pact increase the employment rate of older workers in Belgium? A macro-econometric evaluation," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    7. Börsch-Supan, Axel & Härtl, Klaus & Leite, Duarte N., 2018. "Earnings test, non-actuarial adjustments and flexible retirement," Economics Letters, Elsevier, vol. 173(C), pages 78-83.
    8. repec:iab:iabfme:201808(en is not listed on IDEAS
    9. Börsch-Supan, Axel & Bucher-Koenen, Tabea & Kluth, Sebastian & Haupt, Marlene & Goll, Nicolas, 2015. "Vor- und Nachteile höherer Flexibilität als Instrument zur Erhöhung der Beschäftigung Älterer," MEA discussion paper series 201506, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    10. Songül Tolan, 2015. "Die Flexibilisierung des Rentenübergangs in Deutschland," DIW Roundup: Politik im Fokus 82, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    part-time work; elderly employees; treatment effects; matching;
    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
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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