Financial incentives to postpone retirement
This article analyses whether financial incentives to delay retirement affect the employment and wages of older workers, not just their retirement behavior. We focus on the outcomes of France’s 2003 reform that offered pension bonus to older workers who postponed their retirement until the legal age...
Guardado en:
| Autores principales: | , , |
|---|---|
| Formato: | Article ou chapitre numérique |
| Lenguaje: | Français |
| Publicado: |
2021
|
| Materias: | |
| Acceso en línea: | Accès Université d'Orléans et IFPM Accès Université d'Orléans et IFPM |
| id |
cairn-REOF_170_0321 |
|---|---|
| record_format |
cairn |
| spelling |
cairn-REOF_170_0321REOFRevue de l'OFCE https://shs.cairn.info/revue-de-l-ofce-2020-6-page-321?lang=en https://doi.org/10.3917/reof.170.0321 Financial incentives to postpone retirement Le Duigou, SarahLegendre, BérangèreSabatier, Mareva2021 employmentendogenous wagesequilibrium search modelfinancial retirement incentivesfre Revue de l'OFCE | 170 | 6 | 2021-03-25 | p. 321-344 | 1265-9576 REOF_17062 This article analyses whether financial incentives to delay retirement affect the employment and wages of older workers, not just their retirement behavior. We focus on the outcomes of France’s 2003 reform that offered pension bonus to older workers who postponed their retirement until the legal age. An equilibrium search model is built in which both employment and wage are endogenous, allowing us to analyze the role of both labor supply and demand in the retirement decision. Simulations of the model show that some firms choose to post higher wages to induce their workers to work longer. Thanks to a higher retention, firms save recruitment and training costs. Finally, demand-side considerations can attenuate the impacts of financial incentives that cause wage increases and too few new jobs.Cairn free access |
| language |
Français |
| format |
Article ou chapitre numérique |
| building |
0/Bibliothèque numérique/ 1/Bibliothèque numérique/Cairn/ |
| topic |
employment endogenous wages equilibrium search model financial retirement incentives |
| spellingShingle |
employment endogenous wages equilibrium search model financial retirement incentives Le Duigou, Sarah Legendre, Bérangère Sabatier, Mareva Financial incentives to postpone retirement |
| topic_facet |
employment endogenous wages equilibrium search model financial retirement incentives |
| description |
This article analyses whether financial incentives to delay retirement affect the employment and wages of older workers, not just their retirement behavior. We focus on the outcomes of France’s 2003 reform that offered pension bonus to older workers who postponed their retirement until the legal age. An equilibrium search model is built in which both employment and wage are endogenous, allowing us to analyze the role of both labor supply and demand in the retirement decision. Simulations of the model show that some firms choose to post higher wages to induce their workers to work longer. Thanks to a higher retention, firms save recruitment and training costs. Finally, demand-side considerations can attenuate the impacts of financial incentives that cause wage increases and too few new jobs. |
| author |
Le Duigou, Sarah Legendre, Bérangère Sabatier, Mareva |
| author_facet |
Le Duigou, Sarah Legendre, Bérangère Sabatier, Mareva |
| author_sort |
Le Duigou, Sarah |
| title |
Financial incentives to postpone retirement |
| title_short |
Financial incentives to postpone retirement |
| title_full |
Financial incentives to postpone retirement |
| title_fullStr |
Financial incentives to postpone retirement |
| title_full_unstemmed |
Financial incentives to postpone retirement |
| title_sort |
financial incentives to postpone retirement |
| publishDate |
2021 |
| container_title |
|
| container_issue |
|
| url |
https://ezproxy.univ-orleans.fr/login?url=https://shs.cairn.info/revue-de-l-ofce-2020-6-page-321?lang=en https://ezproxy.univ-orleans.fr/login?url=https://doi.org/10.3917/reof.170.0321 |
| _version_ |
1877246506198630400 |