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Why Are People Working Longer in the Netherlands?

Adriaan Kalwij, Arie Kapteyn, Klaas de Vos


This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.

Chapter in forthcoming NBER book Social Security Programs and Retirement around the World: Working Longer, Courtney Coile, Kevin Milligan, and David Wise, editors
Forthcoming from University of Chicago Press
in NBER Book Series - International Social Security

Labor force participation at older ages has been rising in the Netherlands since the mid-nineteen-nineties. Reforms of the social security and pension systems have often been put forward as main explanations for this rise. However, participation rates above the normal retirement age of 65 have almost tripled for men and quadrupled for women despite the fact that at those ages reforms are unlikely to have had much impact. This suggests other factors may have played an important role in this rise as well. In addition to the effects of reforms in social security and pension systems, this chapter examines the importance for men’s labor force participation at older ages of improved health, increased levels of education, and differences in skills across cohorts, as the older cohorts moved into retirement, such that workers’ characteristics better matched labor demand. These changes on the labor supply side are likely to have contributed to the observed changes since the mid-nineteen-nineties and to have had a large independent impact on men’s labor force participation at older ages.

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This chapter is a revision of the earlier NBER working paper w24636, Why are People Working Longer in the Netherlands?, Adriaan Kalwij, Arie Kapteyn, Klaas de Vos
 
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