Labour Supply Response of a Retirement Earnings Test Reform
AbstractNorwegian administrative data are used to evaluate the impact of a doubling of the threshold in the earnings test on the labour force activity. We find no impact on labour market participation, but positive effects on earnings. The effect increases with exposure to the reform and is stronger for individuals with earnings around the threshold and with high education. Individuals who remain active until retirement age respond more to the reform than those who left labour force earlier. The results indicate both substantial labour supply responsiveness among elderly, and heterogeneity with respect to preferences, labour market options or both.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 25/2009.
Length: 31 pages
Date of creation: 30 Oct 2009
Date of revision:
Contact details of provider:
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
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Retirement earnings test; Benefit entitlement; Labour supply behaviour; Heterogeneity;
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
This paper has been announced in the following NEP Reports:
- NEP-AGE-2010-02-13 (Economics of Ageing)
- NEP-ALL-2010-02-13 (All new papers)
- NEP-LAB-2010-02-13 (Labour Economics)
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