Impact of Delay of Retirement Age on Middle Age Employment Rate

Abstract: This paper examines the implications of delaying retirement on the labor market in China, focusing on its impact on the employment rates across different age groups. Over the past several decades, demographic shifts, such as the aging population and extended education durations, have necessitated adjustments to retirement policies. These adjustments pose significant questions about the optimal retirement age and the consequent effects on the labor market. Utilizing a combination of theoretical frameworks and empirical data, this study explores the correlation between delayed retirement and employment rates among middle-aged and older workers. The findings suggest a significant and positive correlation between these groups, indicating that a delayed retirement age could enhance employment opportunities for middle-aged individuals without adversely affecting the younger workforce. The study engages with data from the 2020 census in China and employs Ordinary Least Squares (OLS) regression models to analyze the relationship between age groups and employment rates. The results show a nuanced impact of delayed retirement on the labor market, with implications for policy-making. Specifically, the paper addresses the potential benefits of a flexible retirement age policy, considering economic, demographic, and social factors.