A model for examining the two basic approaches of encouraging later retirement is presented in which the coercive approach relies primarily on negative incentives such as benefit reductions, and the voluntary approach encourages continued employment through positive incentives and increased employment opportunities. The degree to which these…

Raising the age of mandatory retirement will retard the rate of promotional prospects only slightly in the economy. Larger delays will occur for top positions. Individual firms may experience greater delays depending on their rate of growth, previous retirement age, and willingness of older workers to remain on the job. (Author)