Pathways to Retirement and the Role of Financial Incentives in Sweden
AbstractWe study how economic incentives affect labor force exit through different income security programs, old-age pensions as well as income taxes in Sweden. We use the option value for staying in the labor force as a measure of economic incentives and estimate an econometric model for the choice of leaving the labor market. Besides old-age pension, we focus on the Disability Insurance (DI), which is the most important exit path before age 65. By simulating the effect of different probabilities to be admitted DI we show how changes in the stringency of DI admittance affects labor supply among older workers through economic incentives.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 20123.
Date of creation: May 2014
Date of revision:
Publication status: Forthcoming: Pathways to Retirement and the Role of Financial Incentives in Sweden , Per Johansson, Lisa Laun, Mårten Palme. in Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement , Wise. 2014
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Other versions of this item:
- Per Johansson & Lisa Laun & Mårten Palme, 2014. "Pathways to Retirement and the Role of Financial Incentives in Sweden," NBER Chapters, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement National Bureau of Economic Research, Inc.
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- 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-2014-05-24 (Economics of Ageing)
- NEP-ALL-2014-05-24 (All new papers)
- NEP-DEM-2014-05-24 (Demographic Economics)
- NEP-LAB-2014-05-24 (Labour Economics)
- NEP-LMA-2014-05-24 (Labor Markets - Supply, Demand, & Wages)
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.:
- Karlström, Anders & Palme, Mårten & Svensson, Ingemar, 2008.
"The Employment Effect of Stricter Rules for Eligibility for DI: Evidence from a Natural Experiment in Sweden,"
Research Papers in Economics
2008:3, Stockholm University, Department of Economics.
- Karlström, Anders & Palme, Mårten & Svensson, Ingemar, 2008. "The employment effect of stricter rules for eligibility for DI: Evidence from a natural experiment in Sweden," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2071-2082, October.
- David A. Wise, 2012. "Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participation and Reforms," NBER Books, National Bureau of Economic Research, Inc, number wise11-1, octubre-d.
- Hagen, Johannes, 2013. "A History of the Swedish Pension System," Working Paper Series, Center for Fiscal Studies 2013:7, Uppsala University, Department of Economics.
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