Financial Incentives in the Austrian PAYG-Pension System: Micro-Estimation
AbstractThe scope of this paper is to investigate the impact of financial incentives on the retirement decision of private sector workers in Austria. How do financial incentives embedded in the Austrian pension system impact individual retirement behavior? We are using a unique data set of individual social insurance spells. Micro-estimating the impact of financial incentives on the probability of retirement shows that the behavioral response to financial incentives in Austria is relatively large in international comparison. Also, there are striking behavioral differences between men and women. Using the estimates to simulate the response to reform shows that actual retirement ages could be most successfully brought up by a 6 percentage point deduction in pension benefits per year of early retirement.
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Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0902.
Length: 36 pages
Date of creation: 01 Feb 2009
Date of revision:
Contact details of provider:
Web page: http://aysps.gsu.edu/isp/index.html
Models with Panel Data; Discrete Regression and Qualitative Choice Models; Social Security and Public Pensions; Time Allocation and Labor Supply; Retirement; Retirement Policies.;
Other versions of this item:
- Roman Raab, 2011. "Financial incentives in the Austrian PAYG-pension system: micro-estimation," Empirica, Springer, vol. 38(2), pages 231-257, May.
- Roman Raab, 2009. "Financial Incentives in the Austrian PAYG-Pension System: Micro-Estimation," Working Papers 0144, National University of Ireland Galway, Department of Economics, revised 2009.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-07-17 (Economics of Ageing)
- NEP-ALL-2009-07-17 (All new papers)
- NEP-LAB-2009-07-17 (Labour Economics)
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