Working Horizon and Labour Supply: The Effect of Raising the Full Retirement Age on Middle-Aged Individuals

49 Pages Posted: 16 Apr 2021

Date Written: February 12, 2021

Abstract

This paper analyses the effects of raising the statutory full retirement age on the labour force participation of middle-aged individuals and their partners. Identification relies on a difference-in-differences setting that exploits the large heterogeneous increase in the age eligibility for retirement caused by an unexpected Italian pension reform. We detect a sizeable increase in the participation rate of middle-aged women that spills over into their husbands' labour supply, who choose to postpone their retirement decision.

Keywords: family economics, labour supply, retirement

JEL Classification: J16, J22, J26

Suggested Citation

Carta, Francesca and de Philippis, Marta, Working Horizon and Labour Supply: The Effect of Raising the Full Retirement Age on Middle-Aged Individuals (February 12, 2021). Bank of Italy Temi di Discussione (Working Paper) No. 1314, Available at SSRN: https://ssrn.com/abstract=3827475 or http://dx.doi.org/10.2139/ssrn.3827475

Francesca Carta (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Marta De Philippis

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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