Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237553 
Year of Publication: 
2021
Series/Report no.: 
CERS-IE Working Papers No. CERS-IE WP - 2021/9
Publisher: 
Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies, Budapest
Abstract: 
Typically economists arguing for flexible (or variable) retirement age, but they rely on steady state analysis. In this paper we consider the replacement of a mandatory retirement system with a flexible one in real time. We show that even if early retirement is duly punished, diminishing the effective retirement age by 1 year raises the first year's and the total expenditures during transition by 8% and 70% of the original annual expenditure, respectively.
Subjects: 
retirement age
flexible retirement age
variable retirement age
transition cost
JEL: 
H11
H55
Document Type: 
Working Paper

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