Working Paper: NBER ID: w22561
Authors: Dayanand S. Manoli; Andrea Weber
Abstract: 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.
Keywords: Early Retirement Age; Retirement Decisions; Pension Reforms; Labor Supply
JEL Codes: H55; J21; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increasing the early retirement age (ERA) (J26) | Increase in average job exiting age (J26) |
| Increasing the early retirement age (ERA) (J26) | Increase in average pension claiming age (J26) |
| Increasing the early retirement age (ERA) (J26) | Direct relationship with labor supply decisions (J29) |