DO PENSIONS INCREASE THE LABOR SUPPLY OF OLDER MEN

This paper investigates the relationship between pension coverage and the retirement behavior of older men. Pensions are associated with hig her work involvement for males in their late fifties and early sixties but with lower rates of job holding for those aged 65-69. Age of entr y into pension employment is shown to be positively correlated with fu ture labor supply. When combined with evidence on age-specific changes in labor force participation rates, this pattern casts doubt on the h ypothesis that broadened pension coverage explains a substantial porti on of the trend towards earlier male retirement.