GRAYING AND STAYING ON THE JOB: THE WELFARE IMPLICATIONS OF
28 September 2023
The services and activities provided by the QICSS are made possible by the financial or in-kind support of the Social Sciences and Humanities Research Council (SSHRC), the Canadian Institutes of Health Research (CIHR), the Canada Foundation for Innovation (CFI), Statistics Canada, the Fonds de recherche du Qu´ebec and the Quebec universities. [...] These models use the trends in job separation rates and retirement hazards among workers of the same age in control provinces to provide the counterfactual for the trends in the treated provinces. [...] Specifically, we take into account (i) the maximum tax credit available to workers at age a in province p and year t under the Quebec tax credit for career extension; (ii) a dummy variable for the 2012–13 years interacted with an ROC dummy and age dummies, allowing for age-specific effects of the earlier removal of the work cessation test in the ROC; and (iii) the annual percentage increase in CPP. [...] However, there is little evidence of any correlation between the size of the effects and underlying job separation rates at age 65 (Figure A6g), nor the percentage 29Stacked regressions also give more weight to the effects in provinces where there is more variation in laws (i.e., when bans occur closer to the middle of the panel), but in our case the variation in ban-timing is modest. [...] Thus, we study the effects of the mandatory retirement bans at age 65 on both contemporaneous transitions into self-employment (i.e., in the same year) and transitions in the following year (i.e., in the year the individual turns 66).