Financial incentives to postpone retirement and further effects on employment -- Evidence from a natural experiment

Barbara Hanel
Authors registered in the RePEc Author Service: Barbara Broadway ()

Labour Economics, 2010, vol. 17, issue 3, 474-486

Abstract: This paper examines the effect of the introduction of permanent benefit reductions for early retirees (i) on the duration until benefit claiming and (ii) on the duration until exit from gainful employment. I estimate discrete time duration models using different error term specifications. Administrative data containing the full earnings history of the individuals are used. Since the reform implementing the benefit reductions was a natural experiment, under some assumptions a causal effect can be identified. The permanent reduction of retirement benefit amounts causes a postponement of claiming benefits by about 14Â months and a delay of employment exit by about 10Â months on average.

Keywords: Retirement; insurance; Labor; force; participation; Natural; experiment (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (46)

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Working Paper: Financial Incentives to Postpone Retirement and Further Effects on Employment - Evidence from a Natural Experiment (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:17:y:2010:i:3:p:474-486

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