Retirement Incentives and Labor Supply

Blundell, Richard; French, Eric; Tetlow, Gemma

doi:10.1016/bs.hespa.2016.10.001

Cited by 96 publications

(82 citation statements)

References 123 publications

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“…At the start of the 21 st century this trend towards early retirement has been reversed in quite a number of countries and employers are now encountering employees who retire at a significant later date than before (Blundell, French, & Tetlow, 2016). Now an aging workforce is a reality to be dealt with by employers, the perceptions and attitudes that employers have of older workers may be more in line with reality and hence perhaps also more likely to change.…”

Section: Introductionmentioning

confidence: 94%

Do Stereotypes About Older Workers Change? Evidence from a Panel Study Among Employers

Dalen

Henkens

2017

SSRN Journal

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Abstract:Background: Stereotypies of older workers and their productive value are believed to contrast with their actual potential. Still, these stereotypes among employers persist.Objective: This article examines whether managers have changed their views on older workers and if so what the driving forces are of these changes.Methods: Using panel data we examine the changes in attitudes among Dutch managers about the productive skills of older workers (50 years and older) between 2010 and 2013.Results: Managers have adjusted their view of older workers in a significant manner, especially about their so-called soft skills, like reliability and loyalty. Hard skills or qualitieslike physical stamina, new tech skills and willingness to train -have not changed. Important drivers behind these changes are the age of the manager -the older the manager the more positive he or she is about older workers -and the experience with older workers in the past two years. Increase in the occurrence of problems with older workers tends to depress their assessment of soft and hard skills. Firm characteristics add little explanatory power. Conclusions:Attitudes are not easily susceptible to change but this study shows that the biggest effects are to be expected from the process of aging itself: older managers tend to have a more positive assessment of the hard and soft skills of older workers. Contributions:The main contribution to the scientific literature of this paper is to see in changes in attitudes of individual managers towards older workers over time and the underlying drivers of change.3

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Section: Introductionmentioning

confidence: 94%

Do Stereotypes About Older Workers Change? Evidence from a Panel Study Among Employers

Dalen

Henkens

2017

SSRN Journal

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“…The third econometric issue stems from possible measurement error in the SRH variable from three sources: pure measurement error (see Bound, Brown and Mathiowetz, ; Crossley and Kennedy, ), the justification bias (see Stern, ; Bound, ), or the basing of SRH on subjective judgment, which may hinder comparison across individuals (Kapteyn, Smith and Van Soest, ; Meijer, Kapteyn and Andreyeva, ) . It is also worth noting that the pure measurement error and the reporting differences are likely to attenuate the effects of SRH on employment and wages, whereas the justification bias will most probably exaggerate its effects (Bound, ; Brown et al ., ; Blundell, French and Tetlow, , pp. 485–487).…”

Section: Empirical Model and Estimation Proceduresmentioning

confidence: 99%

What Do Wages Add to the Health‐Employment Nexus? Evidence from Older European Workers

Flores

Kalwij

2018

Oxf Bull Econ Stat

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The role of wages in the health‐employment nexus can be important for designing employment policies aimed at older workers with health limitations. We, therefore, estimate the direct effect of health on employment and hours worked and its indirect effect that is mediated through wages using individual‐level panel data from SHARE. The endogeneity of self‐reported health is controlled for by instrumenting it with severe health conditions in a correlated random effects model. For men, we find that the direct effects of health deterioration, as measured by a reduction in health from the 75th to the 50th percentile of the health distribution, are about a 20% point lower employment probability and about 171 fewer hours worked per year. The indirect health effects through wages work in the opposite directions as health positively affects wages and wages negatively affect employment and hours worked. The total effects of this health deterioration amount to a 12% point lower employment probability and 95 fewer hours worked per year. In particular our finding of a large direct health effect on employment suggests an instrumental role for policy aimed at accommodating workers with health limitations to keep them employed at older ages.

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“…Whether the additional complexity of dynamic programming is advantageous depends on the situation and on how many decisions must be made by a worker. Hence, Blundell, French and Tetlow () emphasise that, without major sources of uncertainty, the option value approach works well, for example, for a worker in a stable job. However, for multiple decisions, the option value seems not to be preferable.…”

Section: Introductionmentioning

confidence: 99%

Retirement Behaviour in Austria: Effects of Incentives on Old‐Age Labour Supply

Hanappi

Nagl

2019

Fiscal Studies

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We provide an extensive analysis of retirement behaviour in Austria with a special focus on the role of incentives delivered by the tax and benefit system in determining individual retirement decisions. A comprehensive microsimulation model of the Austrian pension system is applied to calculate retirement benefit entitlements and forward‐looking incentive measures (social security wealth, accrual rate, peak and option values) on an individual basis. We use the calculated incentive measures as the main explanatory variables in probit models to explain retirement decisions. We base our microsimulation and estimations on an extensive administrative Austrian data set. These data contain information on more than 300,000 new retirees from the period 2001–11. We provide robust evidence that incentive measures are well suited to explaining individual retirement decisions.

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Retirement Incentives and Labor Supply

Cited by 96 publications

References 123 publications

Do Stereotypes About Older Workers Change? Evidence from a Panel Study Among Employers

Do Stereotypes About Older Workers Change? Evidence from a Panel Study Among Employers

What Do Wages Add to the Health‐Employment Nexus? Evidence from Older European Workers

Retirement Behaviour in Austria: Effects of Incentives on Old‐Age Labour Supply

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