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Does raising the retirement age increase older workers' activity? The case of the 2010 french pension reform

Author

Listed:
  • Y. DUBOIS

    (Insee)

  • M. KOUBI

    (Insee)

Abstract

We examine the consequences on older workers activity of the 2010 French pension reform that increased the legal age of retirement from 60 to 62 years. Globally, the activity rate of workers affected by the reform is by 19 to 22 percentage points higher than that of workers of the same age but belonging to generations not affected by the reform. This result is consistent with an ex-ante evaluation using the microsimulation model Destinie managed by the Insee. Moreover, microsimulation allows to first quantify and then sweep out possible interactions between the reform on ages and the other ongoing reforms: the increase in the qualifying period for full pension on the one hand and the so-called long careers reform on the other hand, which allows people with sufficient years of service to retire earlier than the legal age with full pension. The declining number of pensioners at ages affected by the reform results in a higher employment rate for older workers, but also raises unemployment and, to a lesser extent, inactivity (other than retirement)Length:

Suggested Citation

  • Y. Dubois & M. Koubi, 2016. "Does raising the retirement age increase older workers' activity? The case of the 2010 french pension reform," Documents de Travail de l'Insee - INSEE Working Papers g2016-08, Institut National de la Statistique et des Etudes Economiques.
    • Handle: RePEc:nse:doctra:g2016-08
    as

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    File URL: https://www.bnsp.insee.fr/ark:/12148/bc6p06zrcvk/f1.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Retirement age; Policy reform; Labor supply; Older workers;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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