Closing Routes to Retirement for Women: How Do They Respond?

We study the employment effects of a large increase in the early retirement age (ERA) of women. Raising the ERA has the potential to extend contribution periods and to reduce the number of pensioners at the same time. However, workers may not be able to work longer or may choose other social support programs as exit routes from employment. Results suggest that the reform increases employment, unemployment and inactivity rates of women aged 60 and over. However, this is mainly because women remain longer in their respective labor market status, rather than active substitution from employment into unemployment or inactivity.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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