Working Paper: NBER ID: w4925
Authors: Christopher J. Ruhm
Abstract: This paper investigates the relationship between pension coverage and the retirement behavior of older men. Pensions are associated with higher work involvement for males in their late fifties and early sixties but with lower rates of job holding for those aged 65 through 69. Age of entry into pension employment is shown to be positively correlated with future labor supply. When combined with evidence on age-specific changes in labor force participation rates, this pattern casts doubt on the hypothesis that broadened pension coverage explains a substantial portion of the trend toward earlier male retirement.
Keywords: pensions; labor supply; retirement behavior; older men
JEL Codes: J26; J14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| pension coverage (H55) | increased labor supply for males aged 55 to 64 (J20) |
| age of entry into pension employment (J26) | future labor supply (J20) |
| pension coverage (H55) | lower rates of job holding for men aged 65 to 69 (J26) |