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The unequal impact of raising the retirement age: Employment response and program substitution

Chiara Ardito

IZA Journal of Labor Economics2021https://doi.org/10.2478/izajole-2021-0003article
ABDC A
Weight
0.55

Abstract

Using high-frequency Italian administrative data, the author studies the heterogeneous effects of a reform raising the normal retirement age (NRA) from 60 years to 65 years for private-sector male employees. The analysis, based on a difference-in-differences (DD) method, shows that the NRA raise reduces pension benefit claims but does not lead to a one-to-one increase in the employment rate since workers also apply for more disability and unemployment benefits. Moreover, most of them simply retire without any benefit. The extent of the effects varies substantially across socio-economic groups, as individuals with poorer health, with lower occupational grades and lower pay levels are the most constrained by the reform, experiencing the highest delay in pension claims, increase in employment, and inactivity. All in all, this paper shows that raising the NRA could have unintended effects as it affects more negatively the most vulnerable in the labor market.

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https://doi.org/https://doi.org/10.2478/izajole-2021-0003

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@article{chiara2021,
  title        = {{The unequal impact of raising the retirement age: Employment response and program substitution}},
  author       = {Chiara Ardito},
  journal      = {IZA Journal of Labor Economics},
  year         = {2021},
  doi          = {https://doi.org/https://doi.org/10.2478/izajole-2021-0003},
}

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The unequal impact of raising the retirement age: Employment response and program substitution

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Evidence weight

0.55

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.52 × 0.4 = 0.21
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.