The Effect of Firms' Partial Retirement Policies on the Labour Market Outcomes of Their Employees

37 Pages Posted: 23 Aug 2013

See all articles by Martin Huber

Martin Huber

University of Fribourg

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research

Conny Wunsch

University of Basel; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); University of St. Gallen

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Abstract

In this paper, we assess the impact of firms introducing part-time work schemes for gradual labour market exit of elderly workers on their employees' labour market outcomes. The analysis is based on unique linked employer-employee data that combine high-quality survey and administrative data. Our results suggest that partial or gradual retirement options offered by firms are an important tool to alleviate the negative effects of low labour market attachment of elderly workers in ageing societies. When combined with financial incentives to hire unemployed or young jobseekers as replacement, they seem to be particularly beneficial, especially when labour market conditions are difficult. Under such circumstances, they can even have positive spill-over effects on younger workers. Firms should thus be encouraged to offer such schemes.

Keywords: part-time work, elderly employees, treatment effects, matching

JEL Classification: J14, J26, C21

Suggested Citation

Huber, Martin and Lechner, Michael and Wunsch, Conny, The Effect of Firms' Partial Retirement Policies on the Labour Market Outcomes of Their Employees. IZA Discussion Paper No. 7513, Available at SSRN: https://ssrn.com/abstract=2314808 or http://dx.doi.org/10.2139/ssrn.2314808

Martin Huber (Contact Author)

University of Fribourg ( email )

Bd de Pérolles 90
Fribourg, Fribourg CH-1700
Switzerland

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research ( email )

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)

Conny Wunsch

University of Basel ( email )

Petersplatz 1
Basel, CH-4003
Switzerland

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

University of St. Gallen ( email )

Dufourstrasse 50
St. Gallen, 9000
Switzerland

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