Discussion paper

DP11491 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.

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Citation

Weber, A (2016), ‘DP11491 The Effects of the Early Retirement Age on Retirement Decisions‘, CEPR Discussion Paper No. 11491. CEPR Press, Paris & London. https://cepr.org/publications/dp11491