In this paper we evaluate the impact of the oldage part-time scheme (OAPT) on the Austrian labor market which was a policy to allow flexible retirement options for the elderly with an aim to increase labor supply. According to our matching estimates, employment probability increases slightly; especially in the first two years after entrance into the programme. Furthermore, the programme seems to reduce the measured unemployment risk. However, the total number of hours worked is significantly reduced by OAPT. While the policy is meant to reduce early exit from the labor force by allowing part-time work, our analysis indicates that most workers substitute part-time work for fulltime work and thus the overall effect is rather negative.Keywords Evaluation of labor market programmes · Labor supply of the elderly · Nearest neighbor matching

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