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Pension Incentives, Labor Supply and Heterogeneous Pension Systems

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

People with an uncertain health condition might face a double worry. They fear to get disabled, and if they are disabled, that they will receive a low pension. To keep their health they should work less. To improve their disability pension they should work more. This paper demonstrates that the latter effect is the strongest empirically. Thus to protect one self against the income loss of a bad event, the bad event is more likely to happen. Comparing register data from disabled and non-disabled individuals shows that being disabled increases income in the last year before the time of disablement. Further, more generous pension systems increase pre-disablement income even more.

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File URL: http://www.oekonomi.uio.no/memo/2008/pdf_filer/Memo-18-2008.pdf
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Publisher Info
Paper provided by Oslo University, Department of Economics in its series Memorandum with number 18/2008.

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Length: 26 pages
Date of creation: 27 Mar 2007
Date of revision:
Handle: RePEc:hhs:osloec:2008_018

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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; pension; pension systems;

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

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  1. Holen , Dag S., 2007. "Disabillity Pension Motivated Income Adjustment," Memorandum 17/2008, Oslo University, Department of Economics. [Downloadable!]
  2. Holen, Dag S., 2007. "It Ain't Necessariy So," Memorandum 19/2008, Oslo University, Department of Economics. [Downloadable!]
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