By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.
We analyze mandatory retirement in Sweden which eliminates entirely employment
protection at age 67. Employment falls by about 10 percent and total average
earnings by about 20 percent immediately at age 67. 8 percent of jobs separate immediately
due to loss of protection, with effects stemming from jobs with stronger initial
employment protection (long tenure, firms subject to “last in, first out” rules), and
those in the public sector. We examine effects on continuing jobs. While wages appear
rigid, we uncover novel, sizable intensive-margin hours reductions, resulting in an 8
percent drop in earnings conditional on staying on the job.
