Comment on "Shocks, Institutions, and Secular Changes in Employment of Older Individuals"

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Various OECD countries implemented in recent years reforms targeting work incentives directed at older workers. As such, understanding how such reforms affect the labor labor market is crucial. I see this interesting and important paper by Richard Rogerson and Johanna Wallenius as as a first step in an exciting new research agenda. In my discussion I address two issues. First, I focus on the key covariates that drive the employment reversal in the US. The richness of the microlevel US data delivers findings that would be useful to study in the context of the other countries. Second, I present a simple analytical framework, which identifies key forces that shape the employment reversal and discuss how they relate to the authors' hypothesis.