IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/30184.html
   My bibliography  Save this paper

Labor Supply and the Pension-Contribution Link

Author

Listed:
  • Eric French
  • Attila S. Lindner
  • Cormac O'Dea
  • Tom A. Zawisza

Abstract

We estimate the impact of public pension systems on labor supply far from the normal retirement age by exploiting Poland's switch from a Defined Benefit to a Notional Defined Contribution scheme for men born after 1948. Using the universe of taxpayers and this sharp cohort-based discontinuity in the link between current contributions and future benefits, we estimate an employment elasticity with respect to the return to work of 0.44 for ages 51-54. We estimate a lifecycle model that matches these results. The model implies that the change in the contribution-benefit link from the reform increases employment among those in their 30s but decreases it at older ages, reducing overall labor supply across the lifecycle by 2 months.

Suggested Citation

  • Eric French & Attila S. Lindner & Cormac O'Dea & Tom A. Zawisza, 2022. "Labor Supply and the Pension-Contribution Link," NBER Working Papers 30184, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30184
    Note: AG LS PE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w30184.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexander Ahammer & Matthias Fahn & Flora Stiftinger, 2023. "Outside options and worker motivation," Economics working papers 2023-08, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Baurin, Arno & Hindriks, Jean, 2023. "Intergenerational consequences of gradual pension reforms," European Journal of Political Economy, Elsevier, vol. 78(C).
    3. Carol Propper & George Stoye & Max Warner, 2023. "The effects of pension reforms on physician labour supply: Evidence from the English NHS," IFS Working Papers W23/26, Institute for Fiscal Studies.
    4. Cetin, Sefane & Hindriks, Jean, 2023. "Sustainability of pension reforms: An EU-wide political stress," LIDAM Discussion Papers CORE 2023016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

    More about this item

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:30184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.