The effect of firms' phased retirement policies on the labour market outcomes of their employees
Journal
ILR review
ISSN
0019-7939
ISSN-Digital
2162-271X
Type
journal article
Date Issued
2016-04-15
Author(s)
Abstract
In this article, the authors assess the impact on male employees’ labor market outcomes of firms offering a special form of phased retirement. The goal of the program is to smooth the transition from work to retirement and to decrease the costs of public pension and unemployment insurance schemes by increasing the employment of elderly workers. Using a unique linked employer-employee data set, the authors examine whether male employees spend more time in employment and less time in unemployment or inactivity after the introduction of the program. Results suggest that phased retirement options offered by firms can help to reduce some of the public costs of low labor force attachment of elderly workers, mainly by reducing exits through unemployment and by increasing employment and earnings. Under relatively good labor market conditions, they may also encourage a small share of workers to exit the labor market earlier.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
Yes
Publisher
Sage Publications
Volume
69
Number
5
Start page
1216
End page
1248
Subject(s)
Eprints ID
249404