tudy of Early Retirement Effect on Participation of Old People Labor: Case Study of Tehran

Along with increasing life expectancy, quality of life and high retirement age, it has been tried to prevent excessive pressure on labor through creating the early retirement conditions as one part of retirement systems besides working age reductions. The participation of middle-aged and adolescent people is affected by enforcing the early retirement laws The aim of this study is to identify the affecting factors on participation of old people labor supply and to give an answer to this question: does enforcement of adolescent early retirement schemes reduce the labor supply pressure and unemployment?Descriptive method using current population survey has been used to test the hypotheses in this research. The research findings indicate that in the studied sample, 54.9 percent of early-retirees and 52 percent of mature-retirees have not left the labor market. The regression tests show that reduction of working years raises the probability of reemployment of retirees. Thus, it can be said that enforcement of early retirement schemes do not fully result in exit of retirees from labor market. In the selected sample, 45.1 percent of early-retirees went out from labor market; and generally, there is only the possibility of labor replacement for them in labor market. So, considerable changes do not occur by exiting the old people from market and replacement of them. The early retirement has increased the probability of men presence and decreased the probability of women presence in labor market. The retirees having higher education degrees remain more than the others in the labor market and become re-employed. So, the early retirement has increased the specialization level in labor market.