Impact of Early Retirement Incentives on Labour Market Participation: Evidence from a Parametric Change in the Czech Republic

David Kocourek and Filip Pertold

Working Papers from Czech National Bank, Research and Statistics Department

Abstract: We investigate the impact of a change in the Czech early retirement scheme on the labor force participation of older male workers. Using the difference-in-differences method we find that a reduction in early retirement benefits by 2–3% leads to approximately the same decrease in the probability of being inactive. Our finding implies high elasticity of older male workers’ participation rate. The public policy implication is that a reduction in early retirement benefits can serve as a very effective tool to increase the participation of older men in the Czech labor market.

Keywords: Czech Republic; early retirement; labor market participation. (search for similar items in EconPapers)
JEL-codes: J21 J26 (search for similar items in EconPapers)
Date: 2009-12
New Economics Papers: this item is included in nep-age, nep-lab and nep-tra
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https://www.cnb.cz/export/sites/cnb/en/economic-re ... wp/cnbwp_2009_07.pdf

Related works:
Journal Article: The Impact of Early Retirement Incentives on Labor Market Participation: Evidence from a Parametric Change in the Czech Republic (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2009/7

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