The causal effect of partial retirement on older workersâ€™ labor force participation
No 215, Working Papers from Bavarian Graduate Program in Economics (BGPE)
In this study, I investigate the effect of partial retirement at the firm level on older workersâ€™ labor participation. Thereby, I contribute to the controversial debate about the effects of partial retirement. Using detailed administrative employer-employee data from Germany, I exploit the introduction of partial retirement options in Germany related to the law on PR of 1996 within a difference-in-differences framework. My results show that older workersâ€™ labor participation responds to the introduction of partial retirement and reveals substantial effect heterogeneities with regard to the specific partial retirement arrangement. Overall, I find evidence that partial retirement has the potential to extend older workersâ€™ labor participation and thereby to serve as an instrument to lower the financial burden of governments struggling with the economic costs of demographic aging.
Keywords: older workers; partial retirement; retirement decision; difference-in-differences (search for similar items in EconPapers)
JEL-codes: J14 J22 J26 (search for similar items in EconPapers)
Pages: 55 pages
New Economics Papers: this item is included in nep-age, nep-eur, nep-law and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:bav:wpaper:215_schrader
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