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The Effects of the Early Retirement Age on Retirement Decisions

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  • Dayanand S. Manoli
  • Andrea Weber

Abstract

We present quasi-experimental evidence on the effects of increasing the Early Retirement Age (ERA) on older workers' retirement decisions. The analysis is based on social security reforms in Austria in 2000 and 2004, and administrative data allows us to distinguish between pension claims and job exits. Using a Regression Kink Design, we estimate that, within a birth cohort, a 1.0-year increase in the ERA leads to a 0.4-year increase in the average job exiting age and a 0.5-year increase in the average pension claiming age. When the ERA increases, many older workers remain in their jobs longer.

Suggested Citation

  • Dayanand S. Manoli & Andrea Weber, 2016. "The Effects of the Early Retirement Age on Retirement Decisions," NBER Working Papers 22561, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22561
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    References listed on IDEAS

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    Cited by:

    1. Engels, Barbara & Geyer, Johannes & Haan, Peter, 2017. "Pension incentives and early retirement," Labour Economics, Elsevier, vol. 47(C), pages 216-231.
    2. Geyer, Johannes & Haan, Peter & Hammerschmid, Anna & Peters, Michael, 2018. "Labor Market and Distributional Effects of an Increase in the Retirement Age," IZA Discussion Papers 11618, Institute for the Study of Labor (IZA).
    3. Barbara Engels & Johannes Geyer & Peter Haan, 2016. "Pension Incentives and Early Retirement," Discussion Papers of DIW Berlin 1617, DIW Berlin, German Institute for Economic Research.
    4. Tibor Czegledi & Endre Szabo & Melinda Tir & Andras Simonovits, 2016. "Retirement rules in Hungary: gainers and losers," IEHAS Discussion Papers 1631, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    5. Ye, Han, 2018. "The Effect of Pension Subsidies on Retirement Timing of Older Women: Evidence from a Regression Kink Design," IZA Discussion Papers 11831, Institute for the Study of Labor (IZA).
    6. Erik Granseth & Wolfgang Keck & Wolfgang Nagl & Melinda Tir & Andras Simonovits, 2016. "Negative correlation between retirement age and contribution length?," IEHAS Discussion Papers 1633, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    7. Simon Rabaté & Julie Rochut, 2017. "Employment and Substitution Effects of Raising the Statutory Eligibility Age in France," Working Papers halshs-01622346, HAL.
    8. Frimmel, Wolfgang & Pruckner, Gerald, 2018. "Retirement and healthcare utilization," Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181546, Verein für Socialpolitik / German Economic Association.
    9. Cribb, Jonathan & Emmerson, Carl & Tetlow, Gemma, 2016. "Signals matter? Large retirement responses to limited financial incentives," Labour Economics, Elsevier, vol. 42(C), pages 203-212.
    10. repec:eee:labeco:v:51:y:2018:i:c:p:247-270 is not listed on IDEAS
    11. repec:aka:aoecon:v:67:y:2017:i:3:p:359-387 is not listed on IDEAS

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • 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

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