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 …

policy to allow flexible retirement options for the elderly with an aim to increase labour supply. According to our matching …. Furthermore, the programme seems to reduce the measured unemployment risk. However, the total number of hours worked is …