Template-Type: ReDIF-Paper 1.0



Author-Name: Rebecca Schrader
Author-X-Name-First: Rebecca
Author-X-Name-Last: Schrader

Title: The causal effect of partial retirement on older workers’ labor force participation

	
Abstract: In this study, I investigate the effect of partial retirement at the firm level on older workers’ labor participation. Thereby, I contribute to the controversial debate about the effects
of partial retirement. Using detailed administrative employer-employee data from Germany,
I exploit the introduction of partial retirement options in Germany related to the
law on PR of 1996 within a difference-in-differences framework. My results show that
older workers’ labor participation responds to the introduction of partial retirement and
reveals substantial effect heterogeneities with regard to the specific partial retirement arrangement.
Overall, I find evidence that partial retirement has the potential to extend older
workers’ labor participation and thereby to serve as an instrument to lower the financial
burden of governments struggling with the economic costs of demographic aging.

Length: 55 pages
Creation-Date:  2021-12
File-URL: http://www.bgpe.de/texte/DP/215_Schrader.pdf
File-Format: Application/pdf
File-Function: First version, 2021
Number: 215
Classification-JEL: J14, J22, J26

Keywords: older workers, partial retirement, retirement decision, difference-in-differences

Handle: RePEc:bav:wpaper:215_Schrader