Arbeitspapier

The Effects of the Early Retirement Age on Retirement Decisions

We present quasi-experimental evidence on the effects of increasing the Early Retirement Age (ERA) on older workers' retirement decisions. The analysis is based on social security reforms in Austria in 2000 and 2004, and administrative data allows us to distinguish between pension claims and job exits. Using a Regression Kink Design, we estimate that, within a birth cohort, a 1.0 year increase in the ERA leads to a 0.4 year increase in the average job exiting age and a 0.5 year increase in the average pension claiming age. When the ERA increases, many older workers remain in their jobs longer.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 10154

Classification
Wirtschaft
Social Security and Public Pensions
Labor Force and Employment, Size, and Structure
Time Allocation and Labor Supply
Retirement; Retirement Policies
Subject
retirement
early retirement age
pension reform
life cycle labor supply
regression kink design

Event
Geistige Schöpfung
(who)
Manoli, Dayanand
Weber, Andrea
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2016

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Manoli, Dayanand
  • Weber, Andrea
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2016

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