The Effect of a Delayed Retirement Policy on Female Labor Supply: Evidence from the Entire Dutch Population
35 Pages Posted: 16 May 2018
Date Written: August 1, 2017
This paper studies the effect of a delayed retirement policy on female labor supply in the Netherlands. The policy which offers a tax credit for each year of work beyond the age of 62 was introduced in 2009. Using a Difference-in-Differences framework, this study finds that eligibility for the bonus increased labor force participation by 1.3 to 2.5 percentage points. The paper also investigates whether female labor supply is responsive to the size of the bonus at both the intensive and extensive margin. We only find evidence for a response among women with high wage potential.
Keywords: Retirement Policy, Labor Supply
JEL Classification: J14, J22, J26
Suggested Citation: Suggested Citation