Increasing the Retirement Age: Policy Effects and Underlying Mechanisms

Simon Rabaté; Egbert Jongen; Tilbe Atav

doi:10.1257/pol.20210101

Increasing the Retirement Age: Policy Effects and Underlying Mechanisms

Simon Rabaté^*, Egbert Jongen, Tilbe Atav

^*Corresponding author for this work

Applied Economics

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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.

Original language	English
Pages (from-to)	259-291
Number of pages	33
Journal	American Economic Journal: Economic Policy
Volume	16
Issue number	1
DOIs	https://doi.org/10.1257/pol.20210101
Publication status	Published - Feb 2024

Bibliographical note

JEL Classification; H55, J14, J26, J32.

Publisher Copyright: © 2024, American Economic Association. All rights reserved.

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10.1257/pol.20210101

rabaté-et-al-2024-increasing-the-retirement-age-policy-effects-and-underlying-mechanismsFinal published version, 1.16 MBLicence: Article 25fa Dutch Copyright Act

Cite this

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Increasing the Retirement Age: Policy Effects and Underlying Mechanisms

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