Sweden had a special partial pension scheme between 1976 and 2001. It was one of three part-time pension schemes in the social security system. The other two were a partial early old-age pension, and a partial disability pension. The special partial pension scheme became very popular with a high take-up rate and was criticized for being too expensive. As a part of the decision on the old age pension scheme in 1994, the partial pension scheme was made less generous, and the scheme was totally abolished from year 2001. The other two options for combining work and receiving a pension continue. In this paper the effect on the total number of hours worked of the subsidized part-time pension system is analysed. The analysis indicates that the effect that people continue to work part-time instead of taking an early exit route is larger than the effect that people who would have continued to work fulltime until ordinary retirement age instead work part-time.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
2273.
Find related papers by JEL classification: 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 J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped
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References listed on IDEAS 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.:
Steven G. Allen & Robert L. Clark & Linda S. Ghent, 2003.
"Phasing Into Retirement,"
NBER Working Papers
9779, National Bureau of Economic Research, Inc.
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