How will disabled workers respond to a higher retirement age?

torsdag, 21 januar 2021

A higher retirement age has a positive effect on the labor participation of older people, but probably also leads to more disability and unemployment benefit claims. This study shows that older employees who are partially disabled for work are more likely to face a full benefit situation due to the increase in the retirement age.

Financial incentives to continue working have less effect for them compared to younger partially disabled employees. Older people with disabilities are also less likely to return to work than young people. A higher degree of incapacity for work leads to more loss of income for them.