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- W4214530879 abstract "• The early retirement policy is detrimental to the welfare of female workers. • The early retirement causes women to lose benefit from economic growth. • Women have greater exposure to mortality risk because of the early retirement policy. • The economy with low replacement rate benefits less from the equal retirement. • The economy with high men to women ratio benefits less from the equal retirement. China’s mandatory retirement policy requires female workers to retire five years earlier than their male counterparts. The conventional wisdom behind this policy is that it benefits women by relieving them from work earlier, providing them with more years of public pension benefits than men. However, is the early retirement policy really welfare-improving for women? In this paper, we quantitatively evaluate the welfare consequences of China’s gender-specific mandatory retirement policy using a calibrated overlapping generations model with heterogeneous agents and incomplete markets. We find that early mandatory retirement reduces welfare for women. One of the reasons for this result is that China’s public pension benefits are only partially indexed to economic growth, and therefore, women who retire earlier than men benefit less from economic growth. Our quantitative results suggest that equalizing the retirement age across genders will generate welfare gains for both men and women. Furthermore, we find low replacement rate and high men to women ratio diminish this welfare gain." @default.
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- W4214530879 date "2022-04-01" @default.
- W4214530879 modified "2023-10-18" @default.
- W4214530879 title "Does the early retirement policy really benefit women?" @default.
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- W4214530879 doi "https://doi.org/10.1016/j.jebo.2022.01.032" @default.
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