retirement and hence creating job vacancies for the young, improve the allocation of workers to jobs in the labor market? Using a … standard model of labor market search, we establish that the equilibrium with no policy-induced retirement can be efficient …. Even under worst-case parameterizations of our model, we find that public retirement programs pay the elderly substantially …

strong early retirement penalties imposed on "regular" retirees effectively create an alternative path to early retirement …. In this paper, we explore this alternative path quantitatively. We develop a model of job search and retirement behavior … link early retirement penalties to the age at which an individual stops paying contributions. This reform removes the …

supply and endogenous retirement. In this environment, the optimal labor tax is hump-shaped in age: insurance benefits of … taxation push for increasing-in-age taxes while rising labor supply elasticities and optimal late retirement of highly … combination of age-dependent linear taxes with increasing-in-age retirement benefits generates welfare gains close to optimal. …