Partial retirement and the earnings test
AbstractThis paper studies the effects of the earnings test on retirement behavior. The earnings tests of most social security systems tax post-retirement earnings at a relatively high level and do not lead to actuarially fair increases in future benefits. This results in discouragement of partial retirement. The paper shows that a reduction in the earnings test's tax rate is likely to increase part-time work; and that in special cases the increase in work effort may even lead to a reduction in the net transfer from social security to the individual.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Economics Zeitschrift für Nationalökonomie.
Volume (Year): 57 (1993)
Issue (Month): 3 (October)
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Web page: http://www.springerlink.com/link.asp?id=108909
Other versions of this item:
- Zweimuller, Josef, 1992. "Partial Retirement and the Earnings Test," Institute for Research on Labor and Employment, Working Paper Series qt1gq8c1t2, Institute of Industrial Relations, UC Berkeley.
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