Retirement age reforms and worker substitutability: implications for employment of older workers

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F25%3A00635756" target="_blank" >RIV/00216208:11640/25:00635756 - isvavai.cz</a>

Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Retirement age reforms and worker substitutability: implications for employment of older workers

Popis výsledku v původním jazyce

This paper studies how labor demand factors—specifically worker substitutability and job-specific skills—shape employment responses to a rise in the early retirement age. Using a regression discontinuity design, I exploit a 1999 German reform that eliminated the option for women to retire at age 60. Before the reform, older workers could exit voluntarily, thereby imposing turnover costs on firms. Afterward, firms were better able to retain less substitutable, more difficult-to-replace workers for whom turnover costs are higher. At the same time, the loss of early pension eligibility reduced workers’ outside options, allowing firms to offer lower wages. The reform thus improved the retention of less substitutable workers, lowering both turnover costs and wages.

Název v anglickém jazyce

Retirement age reforms and worker substitutability: implications for employment of older workers

Popis výsledku anglicky

This paper studies how labor demand factors—specifically worker substitutability and job-specific skills—shape employment responses to a rise in the early retirement age. Using a regression discontinuity design, I exploit a 1999 German reform that eliminated the option for women to retire at age 60. Before the reform, older workers could exit voluntarily, thereby imposing turnover costs on firms. Afterward, firms were better able to retain less substitutable, more difficult-to-replace workers for whom turnover costs are higher. At the same time, the loss of early pension eligibility reduced workers’ outside options, allowing firms to offer lower wages. The reform thus improved the retention of less substitutable workers, lowering both turnover costs and wages.

Druh

O - Ostatní výsledky

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach<br>I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů