Does retirement decrease the familiarity with ICT of older individuals?

Inability to cope with Information and Communication Technology (ICT) might represent a threat for older individuals’ social inclusion. This paper analyses the effect of retirement on the familiarity with ICT of older individuals. To account for the potential endogeneity of retirement with respect to ICT knowledge we instrument retirement decision with the age-eligibility for early and statutory retirement pension schemes. Using data from the Survey of Health, Ageing and Retirement in Europe we show that retirement reduces the computer literacy and the frequency of internet utilization for men and women. This effect is heterogeneous for women with respect to their propensity to opt for early or statutory retirement schemes. The exit from the labour market does not reduce ICT familiarity for the former, but it does for the latter. The negative retirement effect on ICT knowledge is stronger for white-collar workers, whose occupations require a more intense use of these skills as compared with blue-collar jobs.