Abstract

Developed countries are experiencing rapid workforce aging. A thorough understanding of how workers make retirement decisions is crucial to designing appropriate public policy and organizational strategies to address workforce aging. While there is an extensive literature studying the effects of individual incentives on retirement Timing decisions, very little is known about the influence of workplace peers. Our Research examines peer effects and elderly labor supply using German administrative data for all workers in a census of medium and large private establishments. We exploit changes in pensionable age introduced through federal pension reforms as a Partial Population Intervention (PPI) to distringuish the effects of peer behavior from individual incentives.