The Effects of the Early Retirement Age on Retirement Decisions

Dayanand Manoli and Andrea Weber

No 10154, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: retirement; early retirement age; pension reform; life cycle labor supply; regression kink design (search for similar items in EconPapers)
JEL-codes: H55 J21 J22 J26 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2016-08
New Economics Papers: this item is included in nep-age, nep-dem, nep-eur, nep-lma and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (54)

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Related works:
Working Paper: The Effects of the Early Retirement Age on Retirement Decisions (2016)
Working Paper: The Effects of the Early Retirement Age on Retirement Decisions (2016)
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