The retrenchment of early retirement VUT

Early retirement policies are on a return and are being replaced by measures encouraging older workers to remain in the work force for a longer period of time. A retrenchment of pension rights commenced in 2006, where people born before 1949 remained entitled to tax benefits, while their slightly younger counterparts were not. This paper analyses the effects of this policy measurement by means of a difference-in-difference analyses. A longitudinal panel data spanning 8 years was used to test for this. This is a unique study in this field and consequently provides new and interesting insights. It is however debatable if the aim from the government, namely prolonging the labour participation was eventually reached.