Kopafbeelding agenda CPB

Seminar: Labour market decisions of the Self-employed in the Netherlands at the Statutory Retirement Age

On Tuesday January 16, 2018 Amparo Nagore Garcia (LISER) will give a presentation titled 'Labour market decisions of the Self-employed in the Netherlands at the Statutory Retirement Age'

DateTuesday, 16 January 2018
Time13:00 - 14:00
LocationSeminarroom 3 - Braamzaal
PresentationAmparo Nagore Garcia (LISER)
DiscussantRik Dillingh (CPB)
Working languageEnglish
RubricPensions and Labor economics

The CPB organises seminars for researchers. In these seminars academic papers are presented and discussed. The preliminary findings, presented and discussed, are not intended for publication in any form.
Journalists with questions about seminars, please contact Suzanne van Gils: +31 6 21560776.
Seminars are held on Tuesday from 13.00h to 14.00h.

We investigate retirement decisions of the self-employed in the Netherlands usingadministrative data. We focus on the time period around which individuals reach the statutory retirement age (SRA, 65 years in most cases). After the statutory retirement age, each Dutch resident receives the Old Age State Pension annuity (AOW), providing an income at the subsistence level. Both the timing and the magnitude of this state pension are well known in advance. According to a rational behavior, receiving AOW should therefore have no impact on labour supply choices. While employees often face the demand side restriction of mandatory retirement, this does not apply to the selfemployed. We investigate whether retirement and earnings of the self-employed change at the SRA and whether any such change varies with, e.g., the level of financial wealth. We find a peak in retirement at the time at the SRA. The evidence suggests that the benchmark of retiring at 65 is acting as a driver, due to anchoring or a social norm.

Disclaimer: 'The views and analysis presented in the seminar do not necessarily reflect the opinion of the CPB'

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