The impact of early retirement incentives on labor market participation: evidence from a parametric change in the Czech Republic

0368426 - NHÚ 2012 RIV CZ eng J - Journal Article
Kocourek, D. - Pertold, Filip
The impact of early retirement incentives on labor market participation: evidence from a parametric change in the Czech Republic.
Finance a úvěr-Czech Journal of Economics and Finance. Roč. 61, č. 5 (2011), s. 467-483. ISSN 0015-1920. E-ISSN 0015-1920
R&D Projects: GA MŠMT LC542
Institutional research plan: CEZ:AV0Z70850503
Keywords : early retirement * labor market participation * Czech Republic
Subject RIV: AH - Economics
Impact factor: 0.346, year: 2011
http://journal.fsv.cuni.cz/storage/1226_kocourek.pdf

We investigate the impact of a change in the Czech early retirement scheme on the labor force participation of older male workers. Using the difference-in-differences method we find that a reduction in early retirement benefits by 2-3% leads to significant decrease in the probability of being inactive for eligible individuals. The effect for individuals who are on the margin of eligibility for early retirement is much stronger than that for an average eligible individual. Our finding implies high elasticity of older male workers' participation rate. The public policy implication is that a reduction in early retirement benefits can serve as a very effective tool to increase the participation of older men in the Czech labor market.
Permanent Link: http://hdl.handle.net/11104/0202773