The impact of easy and early access to old-age benefits on exits from the labour market: a macro-micro analysis

Ewa Gałecka-Burdziak and Marek Góra ()

IZA Journal of European Labor Studies, 2016, vol. 5, issue 1, 1-18

Abstract: Abstract We examine whether easy and early access to old-age benefits induce older workers to become inactive. We use Polish LFS data. We find added worker effect prevailing over discouraged worker effect. The latter arises after a few quarters and is asymmetric. Females permanently leave the workforce. More males leave the workforce in contractions than re-enter in expansions. If old-age benefit becomes the main source of income, the worker (after 1 year) is 8 to 20 times more likely to exit the market than unemployment or social welfare beneficiaries. Our findings support higher retirement age—the age when workers become eligible for old-age benefits. JEL classification: J14, J22

Keywords: Old-age benefits; Discouraged workers; Discouraged worker effect; Exits from the labour market; Unemployment outflow; Inflow to inactivity (search for similar items in EconPapers)
Date: 2016
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Working Paper: The impact of easy and early access to old-age benefits on exits from the labour market: a macro-micro analysis (2015)
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DOI: 10.1186/s40174-016-0068-z

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