This study empirically investigates the impacts of delayed mandatory retirement on the Korean labor market. The minimum mandatory retirement age (MMRA) was set at 60 in 2013 and the new MMRA was implemented stepwise since 2016. The primary interest of this study is how this policy change have affected youth employment.

The second chapter reviews the backgrounds and rationales of delaying retirement in South Korea. The third chapter shows most business establishments complied the new MMRA, but only near or at the onset of the new MMRA. The fourth chapter finds the policy actually increased employment rates near the new MMRA for the affected birth cohorts, using a research design based on cohort discontinuity. The fifth chapter investigates the impact of the increased presence of older workers on youth employment at the establishment level. Youth employment decreased by approximately 0.2 for an additional older worker in the establishment owing to the change in the MMRA.

The last chapter concludes and makes the following policy suggestions. First, the process of delaying retirement must be very gradual in order to mitigate the possible negative consequences, particularly those on youth employment. Second, seniority-based wage schemes need to change. By allowing various modes of delaying retirement such as the introduction of a wage peak system or reemployment, a wage should more closely track the actual productivity of the worker. Finally, it is necessary to provide a more favorable environment for creating jobs that meet the needs of older workers.

Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 Population Aging and Delayed Mandatory Retirement
　Section 1 Demographic Changes
　Section 2 Delayed Retirement as a Strategy for Responding to Population Aging: Necessity and Risks
　Section 3 Mandatory Retirement at Age 60 in Korea

Chapter 3 Impact of Mandatory Retirement at Age 60 (1): Changes in Establishment-Level Retirement Policies
　Section 1 Establishment-Level Retirement Age and the Minimum Standard of Age 60
　Section 2 Data: Supplementary Survey of the Establishment Workforce Survey
　Section 3 Changes in Retirement Policies
　Section 4 Implementation of the Wage Peak System
　Section 5 Summary

Chapter 4 Impact of Mandatory Retirement at Age 60 (2): Changes in Elderly Employment
　Section 1 Delayed Retirement and Elderly Employment
　Section 2 Data: Economically Active Population Survey
　Section 3 Econometric Framework: Identification Using Cohort Discontinuities
　Section 4 Analysis Results
　Section 5 Estimation of Annual Increases in Elderly Employment Due to Delayed Retirement
　Section 6 Summary

Chapter 5 Impact of Mandatory Retirement at Age 60 (3): Changes in Youth Employment
　Section 1 Delayed Retirement and Youth Employment
　Section 2 Existing Literature
　Section 3 Theoretical Explanation: Delayed Retirement and Decrease in Youth Employment
　Section 4 Data
　Section 5 Econometric Framework
　Section 6 Analysis Results
　Section 7 Heterogeneous Effects
　Section 8 Public Sector
　Section 9 Summary

Chapter 6 Conclusion

References
Appendix
ABSTRACT