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We study the effect of an increase in the UK state pension age from 65 to 66, a high level internationally, on labour market activity. Despite there being limited financial incentives to retire at the state pension age, we find large effects: the employment rate of 65-year-olds increased by 7.4...
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close to retirement. The age pattern is partly explained by the positive effect of pension wealth on disability pensions …
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financial incentives for early retirement stem mainly from the Austrian tax system and not from the pension system itself. …
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