The Effect of Retirement Incentives on Retirement Behavior: Evidence from the Self-Employed in the United States and England
AbstractIn this paper, we examine how public and private pension and health insurance systems affect the retirement transitions. In many countries, public and private pension eligibility, as well as access to health insurance varies between self-employed and wage and salary workers, and these differences are likely to cause differential retirement patterns both within and across countries. We use the variation in these institutional features within and across the United States and England to analyze retirement patterns. Based on longitudinal data from the Health and Retirement Study (HRS) in the United States and the English Longitudinal Survey of Ageing (ELSA) we find that the higher labor force exit rate of wage and salary workers compared to self-employed workers is due to defined benefit pension incentives created by the public and private pension systems. Higher rates of labor force exit at ages 55 and older in England compared to the United States are due in part to the availability of publicly provided health insurance.
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Bibliographic InfoPaper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp155.
Length: 45 pages
Date of creation: Sep 2007
Date of revision:
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Other versions of this item:
- Julie Zissimopoulos & Nicole Maestas & Lynn A. Karoly, 2007. "The Effect of Retirement Incentives on Retirement Behavior: Evidence from the Self-Employed In the United States and England," Working Papers 528, RAND Corporation Publications Department.
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2008-01-26 (Economics of Ageing)
- NEP-ALL-2008-01-26 (All new papers)
- NEP-IAS-2008-01-26 (Insurance Economics)
- NEP-LAB-2008-01-26 (Labour 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.:
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