Do Pensions Increase the Labor Supply of Older Men?
(223 K)
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NBER Working Paper No. 4925
Issued in November 1994
NBER Program(s): AG LS
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This paper investigates the relationship between pension coverage and the retirement behavior of older men. Pensions are associated with higher work involvement for males in their late fifties and early sixties but with lower rates of job holding for those aged 65 through 69. Age of entry into pension employment is shown to be positively correlated with future labor supply. When combined with evidence on age-specific changes in labor force participation rates, this pattern casts doubt on the hypothesis that broadened pension coverage explains a substantial portion of the trend toward earlier male retirement.
Published: Journal of Public Economics, Vol. 59, No. 2, February 1996, pp.157-175.
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