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The Effect of Retirement Incentives on Retirement Behavior: Evidence from the Self-Employed In the United States and England

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Author Info
Julie Zissimopoulos
Nicole Maestas
Lynn A. Karoly

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Abstract

The authors examine how public and private pension and health insurance systems affect 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. They 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) they 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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File URL: http://www.rand.org/pubs/working_papers/WR528/
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Publisher Info
Paper provided by RAND Corporation Publications Department in its series Working Papers with number 528.

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Length: 44 pages
Date of creation: Oct 2007
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Handle: RePEc:ran:wpaper:528

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Related research
Keywords: retirement self-employment health insurance pensions

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Find related papers by JEL classification:
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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This page was last updated on 2008-10-12.


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