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Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment

Many European countries have implemented pension reforms to increase the statutory retirement age with the aim of increasing labor supply. However, not all older workers may be able or want to work to a very high age. Using a nation-wide register data of labor market transitions, we investigated in...

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Autores principales: Boot, Cécile R.L., Scharn, Micky, van der Beek, Allard J., Andersen, Lars L., Elbers, Chris T.M., Lindeboom, Maarten
Formato: Online Artículo Texto
Lenguaje:English
Publicado: MDPI 2019
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6843330/
https://www.ncbi.nlm.nih.gov/pubmed/31615149
http://dx.doi.org/10.3390/ijerph16203895
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author Boot, Cécile R.L.
Scharn, Micky
van der Beek, Allard J.
Andersen, Lars L.
Elbers, Chris T.M.
Lindeboom, Maarten
author_facet Boot, Cécile R.L.
Scharn, Micky
van der Beek, Allard J.
Andersen, Lars L.
Elbers, Chris T.M.
Lindeboom, Maarten
author_sort Boot, Cécile R.L.
collection PubMed
description Many European countries have implemented pension reforms to increase the statutory retirement age with the aim of increasing labor supply. However, not all older workers may be able or want to work to a very high age. Using a nation-wide register data of labor market transitions, we investigated in this natural experiment the effect of an unexpected change in the Dutch pension system on labor market behaviors of older workers. Specifically, we analyzed transitions in labor market positions over a 5-year period in two nation-wide Dutch cohorts of employees aged 60 years until they reached the retirement age (n = 23,703). We compared transitions between the group that was still entitled to receive early retirement benefits to a group that was no longer entitled to receive early retirement benefits. Results showed that the pension reform was effective in prolonging work participation until the statutory retirement age (82% vs. 61% at age 64), but also to a larger proportion of unemployment benefits in the 1950 cohort (2.0–4.2%) compared to the 1949 cohort (1.4–3.2%). Thus, while ambitious pension reforms can benefit labor supply, the adverse effects should be considered, especially because other studies have shown a link between unemployment and poor health.
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spelling pubmed-68433302019-11-25 Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment Boot, Cécile R.L. Scharn, Micky van der Beek, Allard J. Andersen, Lars L. Elbers, Chris T.M. Lindeboom, Maarten Int J Environ Res Public Health Article Many European countries have implemented pension reforms to increase the statutory retirement age with the aim of increasing labor supply. However, not all older workers may be able or want to work to a very high age. Using a nation-wide register data of labor market transitions, we investigated in this natural experiment the effect of an unexpected change in the Dutch pension system on labor market behaviors of older workers. Specifically, we analyzed transitions in labor market positions over a 5-year period in two nation-wide Dutch cohorts of employees aged 60 years until they reached the retirement age (n = 23,703). We compared transitions between the group that was still entitled to receive early retirement benefits to a group that was no longer entitled to receive early retirement benefits. Results showed that the pension reform was effective in prolonging work participation until the statutory retirement age (82% vs. 61% at age 64), but also to a larger proportion of unemployment benefits in the 1950 cohort (2.0–4.2%) compared to the 1949 cohort (1.4–3.2%). Thus, while ambitious pension reforms can benefit labor supply, the adverse effects should be considered, especially because other studies have shown a link between unemployment and poor health. MDPI 2019-10-14 2019-10 /pmc/articles/PMC6843330/ /pubmed/31615149 http://dx.doi.org/10.3390/ijerph16203895 Text en © 2019 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
spellingShingle Article
Boot, Cécile R.L.
Scharn, Micky
van der Beek, Allard J.
Andersen, Lars L.
Elbers, Chris T.M.
Lindeboom, Maarten
Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment
title Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment
title_full Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment
title_fullStr Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment
title_full_unstemmed Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment
title_short Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment
title_sort effects of early retirement policy changes on working until retirement: natural experiment
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6843330/
https://www.ncbi.nlm.nih.gov/pubmed/31615149
http://dx.doi.org/10.3390/ijerph16203895
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