Higher R&D Input Intensity and Early Exit from the Labor Market: A Study on Middle-Aged Workers
- ZHANG Binbin
- Chinese Academy of Social Sciences, 100006.
It is a paradox when the rising age of retirement stipulated in policy meets the phenomenon of early retirement of middle-aged workers, which is adverse to making full use of human resources and partly hinders rising workers' welfare by income cuts. Increasing the intensity of R&D input in production alters the labor market structure by accelerating innovation and promoting technical change. This paper estimates the effect of heightening the intensity of R&D input on the probability of withdrawing from employment for workers who are in their 40s and 50s but have not reached the official age of retirement. Our results show that workers in sectors with fast-rising intensity of R&D input prefer an early exit. Our results are robust to a wide range of optional model settings. This study helps us better understand the impact of innovation on employment by examining workers' behavior change, and provides new insight into understanding early retirement in labor markets, both of which have important policy implications.
JEL：J26, M50, O33
- Workers in Their 40s and 50s, R&D Input Intensity, I-O Table, Exit from the Labor Market, Average Partial Effects