Work

Increasing the Retirement Age: Policy Effects and Underlying Mechanisms

Year: 2024

Type: article

Abstract: We study the effects of increasing the statutory retirement age (SRA) in the Netherlands, using regression discontinuity design and administrative data on the universe of the population. We find clear and large employment effects of the reform. A simple model in which individuals stay longer in their pre-SRA labor market state predicts the treatment effects well. The employment level before the SRA and the retirement hazard at the SRA are the key determinants of the effects of the policy change. Exploring potential explanations for the high hazard rate observed in the Netherlands, our results point to an important role for employers’ effects. (JEL H55, J14, J26, J32)

Source: American Economic Journal Economic Policy

DOI: 10.1257/pol.20210101

Authors: Simon Rabaté, Egbert Jongen, Tilbe Atav

Institutions: Institut national d'études démographiques, CPB Netherlands Bureau for Economic Policy Analysis, Leiden University, Erasmus University Rotterdam

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W4391386992

FWCI: 12.92

Cites: 29

Cited by: 19

Related to: 10