 Unintended consequences of the retirement‐age extension in South KoreaTai Lee and Joonmo Cho Asian-Pacific Economic Literature, 2022, vol. 36, issue 1, 105-125 Abstract: In this study, we investigate the effects of the policy on the legal retirement age of 60 (or above) implemented in Korea in 2016. It was generally expected that the implementation of the policy would extend the retirement age of workers and provide them with minimum employment up to the age of 60. However, our empirical analysis provides evidence contrary to general expectations. First, post the introduction of the policy, the probability of workers retiring at the mandatory retirement age has decreased, whereas the probability of workers retiring early for involuntary reasons in their 50s has increased. Second, the workers who were predicted to benefit from the policy had trouble retaining their jobs until the legal retirement age of 60. These results demonstrate the possibility that companies attempted to terminate their senior workers before they reached the mandatory retirement age of 60 by means of recommendations to resign and offers of honourable retirement. In conclusion, we found that it is difficult to provide actual employment protection up to the legal retirement age by making it compulsory through legislation. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:apacel:v:36:y:2022:i:1:p:105-125 Ordering information: This journal article can be ordered from Access Statistics for this article Asian-Pacific Economic Literature is currently edited by Yixiao Zhou More articles in Asian-Pacific Economic Literature from The Crawford School, The Australian National University |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.