Events at CERGE-EI

Let us invite you to a Brown Bag Seminar by Sona Badalyan (CERGE-EI Ph.D. student)
on Tuesday, Sep 5th, at 10:00, in room 402.

You can join also online: Lifesize link: https://call.lifesizecloud.com/19139636, password: 5995

Presenter: Sona Badalyan

Title: "Spillover Effects of Raising the Retirement Age on Coworkers and Firm Employment"

Description:

This paper studies retirement age increase spillovers on firm employment and co-workers' career advancements using the 1999 reform in Germany. The reform increased the early retirement age (ERA) from 60 to at least 63 years old by abolishing the women pathway to retirement discontinuously around the 1952 cohort cutoff. Using the exogenous cohort cutoffs for identification and administrative records of Germany as a data source, I show results on:

(i) the direct effect of the reform on the older women themselves:I find that the employment at 60-63 years old increases by around 17% due to the ERA increase. The effect is higher in thick internal labor markets and thin external labor markets, non-routine occupations (which are complements to automation), occupations with higher specialization of human capital and managerial positions. Higher employer premiums and worker ability are also associated with higher labor supply increase at the age 60-63. There is also some evidence of learning from peers (coworkers) affected by the same reform.

(ii) indirect effects on coworkers and establishment hiring:
The preliminary results show negative effects on hiring new workers externally. Similar to the direct effect, the result masks substantial heterogeneity by workplace characteristics and labor market frictions.

More details will be shown during the presentation.