Throughout the last decades, employment rates of older workers in most European countries have been falling, as has the age of exit from the labour force. This development does not only exert heavy financial pressures on social security systems but inhibits also the potential of older workers to...

Many pay-as-you-go pension systems have increased or plan to increase their legal retirement age (LRA) to address the financial consequences of ageing. Although the success of these policies is ultimately determined at the labour market, little is known about the effects of higher LRAs at the...