retirement as an absorbing state, that we calibrate to match the observed patterns. Our finding is that the dynamics of relative … into retirement. In contrast, differences in layoff rates and job offer arrival rates cannot explain these patterns. Our … results support the idea that retirement incentives, more than weak labor demand, are responsible for the low employment rates …

the census of private sector employees in Austria and variation from mandated discontinuous changes in retirement benefits … from the Austrian pension system. We first present graphical evidence documenting delays in retirement in response to the …