Increasing the Effective Retirement Age: Key Factors and Interaction Effects

Tilbe Atav, Egbert L. W. Jongen () and Simon Rabat
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Tilbe Atav: CPB Netherlands Bureau for Economic Policy Analysis
Egbert L. W. Jongen: Leiden University
Simon Rabat: CPB Netherlands Bureau for Economic Policy Analysis

No 14150, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effects of the recent increase in the statutory retirement age (SRA) in the Netherlands, using RDD and rich administrative data on the universe of the Dutch population. We find large interaction effects with a preceding early retirement reform. The employment effect of the SRA reform is much larger for cohorts receiving less generous early retirement benefits. Indeed, the level of employment before the SRA, together with the retirement hazard at the SRA, is key to understanding the effects of retirement age reforms. Our results further point to a big role for automatic job termination in the Netherlands.

Keywords: social insurance; employment; statutory retirement age; bunching; Netherlands (search for similar items in EconPapers)
JEL-codes: J14 J26 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2021-02
New Economics Papers: this item is included in nep-age, nep-eur, nep-ias and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published as 'Increasing the Retirement Age: Policy Effects and Underlying Mechanisms' in: American Economic Journal: Economic Policy, 2024, 16 (1), 259-291.

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