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Early Retirement Provisions and the Labor Force Behavior of Older Men: Evidence from Canada

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Author Info
Baker, Michael
Benjamin, Dwayne

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Abstract

We examine the (sequential) introduction of early retirement provisions to Canada's two public pension plans. These reforms provide a unique opportunity to assess the effect of public pension plan parameters on labor supply behavior, free of the biases that potentially affect the simple time-series or cross-section inference presented in many previous studies. We find that the reforms led to an increase in pension receipt but had little immediate effect on labor market behavior. This is due to the fact that men who initially took advantage of the early retirement provisions would otherwise have had limited labor market participation. Copyright 1999 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 17 (1999)
Issue (Month): 4 (October)
Pages: 724-56
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Handle: RePEc:ucp:jlabec:v:17:y:1999:i:4:p:724-56

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  1. Michael Baker, 1999. "The Retirement Behavior of Married Couples: Evidence From the Spouse's Allowance," Working Papers baker-99-01, University of Toronto, Department of Economics. [Downloadable!]
    Other versions:
  2. Frank T. Denton & Byron G. Spencer, 2008. "What Is Retirement? A Review and Assessment of Alternative Concepts and Measures," Quantitative Studies in Economics and Population Research Reports 427, McMaster University. [Downloadable!]
  3. Frank T. Denton & Byron G. Spencer, 2008. "What is Retirement? A Review and Assessment of Alternative Concepts and Measures," Social and Economic Dimensions of an Aging Population Research Papers 231, McMaster University. [Downloadable!]
  4. Jonathan Gruber, 1997. "Social Security and Retirement in Canada," NBER Working Papers 6308, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Yorgos Y. Papageorgiou & David Pines, 2000. "Externalities, Indivisibility, Nonreplicability and Agglomeration," Department of Economics Working Papers 2000-01, McMaster University. [Downloadable!]
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  6. Michael Baker & Jonathan Gruber & Kevin Milligan, 2001. "The Retirement Incentive Effects of Canada's Income Security Programs," Social and Economic Dimensions of an Aging Population Research Papers 65, McMaster University. [Downloadable!]
    Other versions:
  7. Mark Stabile, 2004. "Payroll Taxes and the Decision to be Self-Employed," Asia-Pacific Financial Markets, Springer, vol. 11(1), pages 31-53, January. [Downloadable!] (restricted)
  8. Michele Campolieti, 2002. "Moral Hazard and Disability Insurance: On the Incidence of Hard-to-Diagnose Medical Conditions in the Canada/Quebec Pension Plan Disability Program," Canadian Public Policy, University of Toronto Press, vol. 28(3), pages 419-441, September. [Downloadable!] (restricted)
  9. Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2005. "The effect of health changes and long-term health on the work activity of older Canadians," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 999-1018. [Downloadable!]
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  10. Frank T. Denton & Ross Finnie & Byron G. Spencer, 2009. "Patterns of Retirement as Reflected in Income Tax Records for Older Workers," Social and Economic Dimensions of an Aging Population Research Papers 257, McMaster University. [Downloadable!]
  11. Jonathan Gruber & David Wise, 1997. "Social Security Programs and Retirement Around the World: Introduction and Summary of Papers by..," NBER Working Papers 6134, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Frank T. Denton & Ross Finnie & Byron G. Spencer, 2009. "Patterns of Retirement as Reflected in Income Tax Records for Older Workers," Quantitative Studies in Economics and Population Research Reports 434, McMaster University. [Downloadable!]
  13. J.B. Burbidge, 2001. "Awkward Moments in Teaching Public Finance," Department of Economics Working Papers 2001-01, McMaster University. [Downloadable!]
  14. Alan B. Krueger & Bruce D. Meyer, 2002. "Labor Supply Effects of Social Insurance," NBER Working Papers 9014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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