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Disabillity Pension Motivated Income Adjustment

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Author Info
Holen , Dag S. (Ragnar Frisch Centre for Economic Research)
Abstract

One element of the Norwegian disability pension system makes the extent to which pension responds to changes in income in the last three years before disablement vary over different income profiles. This special feature is explored in order to identify an individual specific pension incentive for income adjustment. If disability is foreseen, this feature implies that there is a motive for increasing income in the years before disablement and through this increase pensions. Analysis on register data for all persons receiving disability pension 1992-2001 shows that the possibility to affect pensions increases income, indicating that disability to some extent is foreseen and that individuals strategically adjust their income in order to increase their pensions.

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File URL: http://www.oekonomi.uio.no/memo/2008/pdf_filer/Memo-17-2008.pdf
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Publisher Info
Paper provided by Oslo University, Department of Economics in its series Memorandum with number 17/2008.

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Length: 43 pages
Date of creation: 28 Mar 2007
Date of revision:
Handle: RePEc:hhs:osloec:2008_017

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Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
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Web page: http://www.oekonomi.uio.no/indexe.html
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Related research
Keywords: Disability pension; Income adjustment;

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Find related papers by JEL classification:
A10 - General Economics and Teaching - - General Economics - - - General

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  1. Bratberg, Espen, 1999. " Disability Retirement in a Welfare State," Scandinavian Journal of Economics, Blackwell Publishing, vol. 101(1), pages 97-114, March. [Downloadable!] (restricted)
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  2. Jonathan Gruber, 2000. "Disability Insurance Benefits and Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1162-1183, December. [Downloadable!] (restricted)
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  3. Haveman, Robert & de Jong, Philip & Wolfe, Barbara, 1991. "Disability Transfers and the Work Decision of Older Men," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 939-49, August. [Downloadable!] (restricted)
  4. Diamond, Peter & Sheshinski, Eytan, 1995. "Economic aspects of optimal disability benefits," Journal of Public Economics, Elsevier, vol. 57(1), pages 1-23, May. [Downloadable!] (restricted)
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  5. Mari Rege, Kjetil Telle and Mark Votruba, 2005. "The Effect of Plant Downsizing on Disability Pension Utilization," Discussion Papers 435, Research Department of Statistics Norway. [Downloadable!]
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  6. Diamond, P. A. & Mirrlees, J. A., 1978. "A model of social insurance with variable retirement," Journal of Public Economics, Elsevier, vol. 10(3), pages 295-336, December. [Downloadable!] (restricted)
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  7. Mikhail Golosov & Aleh Tsyvinski, 2006. "Designing Optimal Disability Insurance: A Case for Asset Testing," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 257-279, April. [Downloadable!] (restricted)
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  8. Holen, Dag S., 2007. "Pension Incentives, Labor Supply and Heterogeneous Pension Systems," Memorandum 18/2008, Oslo University, Department of Economics. [Downloadable!]
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