Working Paper: NBER ID: w9779
Authors: Steven G. Allen; Robert L. Clark; Linda S. Ghent
Abstract: Employers have been launching phased retirement programs to help workers navigate the transition from work to retirement more effectively. This paper examines the experience of the phased retirement system for tenured faculty in the University of North Carolina system. After phased retirement was introduced, there was a sizable increase in the overall separation rate in the system. A multinomial logit model of the retirement decision as a function of pension incentives, employee performance, demographics, and campus characteristics is developed. The key empirical result is that the odds of entering phased retirement are strongly and inversely related to employee performance, as measured by recent pay increases.
Keywords: No keywords provided
JEL Codes: J1; J2; J4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| employee performance (M51) | odds of entering phased retirement (J26) |
| introduction of phased retirement (J26) | labor supply (J20) |
| phased retirement (J26) | overall separation rates (J63) |
| lower-performing faculty (D29) | likelihood of entering phased retirement (J26) |
| lower-performing faculty (D29) | overall faculty productivity (D29) |
| phased retirement (J26) | faculty productivity (D29) |
| pension incentives (J32) | retirement decisions (J26) |