Advanced Search
MyIDEAS: Login to save this article or follow this journal

A dynamic programming approach to model the retirement behaviour of blue-collar workers in Sweden

Contents:

Author Info

  • Anders Karlstrom

    (Systems Analysis and Economics, Royal Institute of Technology, Stockholm, Sweden)

  • Marten Palme

    (Department of Economics, Stockholm University, Sweden)

  • Ingemar Svensson

    (National Social Insurance Board, Stockholm, Sweden)

Abstract

This paper presents an empirical analysis of how Sweden's public old age pension system affects the retirement decision. We focus on male blue-collar workers whose dominant income source as retired comes from the public old age pension system. We develop a dynamic programming model using the rules for the public pension system. In addition to the effects of economic incentives through the pension systems the DP model also measures the effect of the mandatory retirement age of 65-which applies to most parts of Sweden's labour market-on retirement behaviour. The estimated model fits within-sample retirement patterns remarkably well. A simulation of a hypothetical reform, where all retirement incentives in the pension schemes are delayed by three years, shows that economic incentives affect retirement behaviour. Copyright © 2004 John Wiley & Sons, Ltd.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1002/jae.798
File Function: Link to full text; subscription required
Download Restriction: no

File URL: http://qed.econ.queensu.ca:80/jae/2004-v19.6/
File Function: Supporting data files and programs
Download Restriction: no

Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 19 (2004)
Issue (Month): 6 ()
Pages: 795-807

as in new window
Handle: RePEc:jae:japmet:v:19:y:2004:i:6:p:795-807

Contact details of provider:
Web page: http://www.interscience.wiley.com/jpages/0883-7252/

Order Information:
Email:
Web: http://www3.interscience.wiley.com/jcatalog/subscribe.jsp?issn=0883-7252

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Mårten Palme & Ingemar Svensson, 2004. "Income Security Programs and Retirement in Sweden," NBER Chapters, in: Social Security Programs and Retirement around the World: Micro-Estimation, pages 579-642 National Bureau of Economic Research, Inc.
  2. Karlström, Anders & Palme, Mårten & Svensson, Ingemar, 2002. "The Timing of Retirement and Social Security Reforms: Measuring Individual Welfare Changes," Arbetsrapport 2002:8, Institute for Futures Studies.
  3. John Rust & Christopher Phelan, 1994. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Public Economics 9406005, EconWPA, revised 06 Jul 1994.
  4. Eric French, 2000. "The effects of health, wealth, and wages on labor supply and retirement behavior," Working Paper Series WP-00-2, Federal Reserve Bank of Chicago.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. de Luna, Xavier & Stenberg, Anders & Westerlund, Olle, 2008. "Can Adult Education Delay Retirement from the Labour Market?," UmeÃ¥ Economic Studies 756, Umeå University, Department of Economics.
  2. Zhiyang Jia, 2005. "Retirement Behavior of Working Couples in Norway. A Dynamic Programming Approach," Discussion Papers 405, Research Department of Statistics Norway.
  3. Victor Aguirregabiria, 2007. "Another Look at the Identification of Dynamic Discrete Decision Processes: With an Application to Retirement Behavior," Working Papers tecipa-282, University of Toronto, Department of Economics.
  4. Peter Haan & Victoria Prowse, 2010. "A structural approach to estimating the effect of taxation on the labour market dynamics of older workers," Econometrics Journal, Royal Economic Society, vol. 13(3), pages S99-S125, October.
  5. Pedro Mira & Victor Aguirregabiria, 2007. "Dynamic Discrete Choice Structural Models: A Survey," Working Papers wp2007_0711, CEMFI.
  6. repec:hal:wpaper:halshs-00586748 is not listed on IDEAS
  7. Iskhakov, Fedor, 2008. "Dynamic Programming Model of Health and Retirement," Memorandum 03/2008, Oslo University, Department of Economics.
  8. Noelia BERNAL & Frederic VERMEULEN, 2013. "The impact of an increase in the legal retirement age on the effective retirement age," Center for Economic Studies - Discussion papers ces13.03, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  9. Vare, Minna, 2005. "Timing of the Early Retirement Decisions of Farming Couples," 94th Seminar, April 9-10, 2005, Ashford, UK 24412, European Association of Agricultural Economists.
  10. Tibor Hanappi, 2012. "Retirement Behaviour in Austria: Incentive Effects on Old-Age Labor Supply," NRN working papers 2012-13, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:jae:japmet:v:19:y:2004:i:6:p:795-807. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.