Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/124939 
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers No. 9430
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Using data from a stated preferences experiment in the Netherlands, we find that replacing full-time pension schemes with schemes that offer gradual retirement opportunities induce workers to retire one year later on average. Total life-time labour supply, however, decreases with 3.4 months because the positive effect of delayed retirement on labour supply is cancelled out by the reduction in working hours before full retirement. The impact of gradual retirement schemes is, however, heterogeneous across groups of workers. Workers with non-routine job tasks retire at a later age when they can gradually retire. Financial incentives, either in terms of changing pension income or the price of leisure, also affect the expected retirement age, but the impact of these financial incentives does not differ with the possibility of gradual retirement. Finally, we find that gradual retirement is not a preferred option among workers as the large majority still prefers full retirement. This especially holds for workers with a lower wage and those with higher life expectancy.
Subjects: 
gradual retirement
labour supply
financial incentives
JEL: 
J14
J26
Document Type: 
Working Paper

Files in This Item:
File
Size
262.65 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.