Voluntary pension savings and tax incentives: Evidence from Finland
AbstractThis paper studies empirically savers? behavioral responses to the Finnish tax reform of 2005 by using comprehensive panel data. The tax schedule of voluntary pension savings changed from progressive to proportional, changing the saving incentives in different subgroups. The results indicate that the reform altered saving behavior by reducing voluntary pension saving coverage among high income-earners by 4 percentage points and increasing it among low incomeearners by 2 percentage points. The reform also reduced annual saving contributions among high income-earners by over 20 percent. The estimated effects result entirely from the changed saving behavior of men.
Download InfoIf 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.
Bibliographic InfoPaper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 33.
Date of creation: 25 Jun 2012
Date of revision:
Other versions of this item:
- Jarkko Harju, 2013. "Voluntary Pension Savings and Tax Incentives: Evidence from Finland," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 69(1), pages 3-29, March.
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-07-14 (Accounting & Auditing)
- NEP-AGE-2012-07-14 (Economics of Ageing)
- NEP-ALL-2012-07-14 (All new papers)
- NEP-PBE-2012-07-14 (Public Economics)
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.:
- repec:ner:ucllon:http://discovery.ucl.ac.uk/2844/ is not listed on IDEAS
- Eric M. Engen & William G. Gale & John Karl Scholz, 1994. "Do Saving Incentives Work?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 85-180.
- Victor Chernozhukov & Christian Hansen, 2004. "The Effects of 401(K) Participation on the Wealth Distribution: An Instrumental Quantile Regression Analysis," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 735-751, August.
- Ilja Kristian Kavonius, 2010. "Fiscal policies in Europe and the United States during the Great Depression," Working Papers 13, Government Institute for Economic Research Finland (VATT).
- Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003.
"Evaluating the Employment Impact of a Mandatory Job Search Programme,"
CEPR Discussion Papers
3786, C.E.P.R. Discussion Papers.
- Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, 06.
- Orazio P. Attanasio & Thomas DeLeire, 2002. "The Effect Of Individual Retirement Accounts On Household Consumption And National Saving," Economic Journal, Royal Economic Society, vol. 112(6), pages 504-538, July.
- Woojin Chung & Richard Disney & Carl Emmerson & Matthew Wakefield, . "Public policy and retirement saving incentives in the UK," Discussion Papers 06/03, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- repec:ner:ucllon:http://discovery.ucl.ac.uk/15843/ is not listed on IDEAS
- Hans Fehr & Christian Habermann & Fabian Kindermann, 2006.
"Tax-Favored Retirement Accounts: Are they Efficient in Increasing Savings and Growth?,"
012, Bavarian Graduate Program in Economics (BGPE).
- Hans Fehr & Christian Habermann & Fabian Kindermann, 2008. "Tax-Favored Retirement Accounts: Are they Efficient in Increasing Savings and Growth?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(2), pages 171-198, June.
- Richard Disney & Carl Emmerson & Matthew Wakefield, 2010. "Tax Reform and Retirement Saving Incentives: Take-up of Stakeholder Pensions in the UK," Economica, London School of Economics and Political Science, vol. 77(306), pages 213-233, 04.
- Aki Kangasharju & Joni Hokkanen & Ismo Linnosmaa & Hannu Valtonen, 2012. "Generic substitution policy, prices and market structure: evidence from a quasi-experiment in Finland," Working Papers 35, Government Institute for Economic Research Finland (VATT).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anita Niskanen).
If references are entirely missing, you can add them using this form.