Elena Castellaro (University of Amsterdam)
In aging societies with rising statutory retirement ages, a central policy challenge is to extend working lives while preserving health. This paper examines the effects of a late-career policy that allows teachers in the Netherlands to reduce working hours to mitigate workload pressures. I exploit a 2014 reform that increased the programs eligibility age in a difference-in-discontinuities design to identify its impact on teacher retention and health. Using comprehensive administrative data from Statistics Netherlands, I show that eligibility generates substantial programs take-up and raises the probability of remaining employed as a teacher over the subsequent five years. Access to the program also improves mental health. Antidepressant use declines substantially, particularly among women, and healthcare expenditures decrease. Overall, the findings indicate that workload reduction policies targeted at older workers can enhance health while supporting continued employment.