Policy Analyses
Socioeconomic Effects of Retirement Age Extension
- Author
Nam, Sang-Ho
- Publication Date
0000
- Pages
- Series No.
- Language
The policy of the retirement age extension is expected to apply to only a few select industries and occupations―those requiring skilled workers. The most likely candidates are the professional/scientific/technical services, business support services, public administration, education services, and health and social work. The analysis indicates that increases in labor supply from older workers would lead to falls in wages and increases in total employment overall.
It is unlikely to reduce the poverty rate or mitigate inequality in the short run. This is mainly because the benefits of a higher retirement age would be concentrated in workers already at the top of the earned income distribution.