Working Paper: CEPR ID: DP9574
Authors: Martin Huber; Michael Lechner; Conny Wunsch
Abstract: In this paper, we assess the impact of firms introducing part-time work schemes for gradual labour market exit of elderly workers on their employees? labour market outcomes. The analysis is based on unique linked employer-employee data that combine high-quality survey and administrative data. Our results suggest that partial or gradual retirement options offered by firms are an important tool to alleviate the negative effects of low labour market attachment of elderly workers in ageing societies. When combined with financial incentives to hire unemployed or young jobseekers as replacement, they seem to be particularly beneficial, especially when labour market conditions are difficult. Under such circumstances, they can even have positive spill-over effects on younger workers. Firms should thus be encouraged to offer such schemes.
Keywords: elderly; employees; matching; part-time work; treatment effects
JEL Codes: C21; J14; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Availability of part-time work for elderly employees (PWE) (J29) | Timing of elderly workers' withdrawal from the labour market (J26) |
| Availability of part-time work for elderly employees (PWE) (J29) | Unemployment on the path towards early retirement (J26) |
| Availability of part-time work for elderly employees (PWE) (J29) | Employment for elderly workers in East Germany (J26) |
| Availability of part-time work for elderly employees (PWE) (J29) | Tenure for elderly workers in East Germany (J26) |
| Availability of part-time work for elderly employees (PWE) (J29) | Job stability for younger females aged 31-40 in East Germany (J21) |
| Availability of part-time work for elderly employees (PWE) (J29) | Reduced unemployment for younger females aged 31-40 in East Germany (J21) |