Social Sciences
4 years ago

Generous early retirement provisions lead firms to push employees out early.

SSRN Electronic Journal
Early Retirement: Free Choice or Forced Decision?
David Dorn, Alfonso Sousa‐Poza

Paper Summary

Early retirement can be a choice or forced by companies wanting to make more money. A study looked at data from 19 countries and found that when social security offers good early retirement benefits, more people choose to retire early. Companies also use early retirement to cut staff during tough times and get around laws protecting employees.

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