Labor supply on the eve of retirement. Disparate effects of immediate and postponed rewards to working
AbstractWe study two recent changes in incentives to work facing 67-69 year old workers in Norway: an earnings test reform which increases current earnings from work, and a pension system maturation which removes pension accrual from work. Within a difference-in-differences framework, we exploit these changes to investigate the effects of economic incentives. We find the earnings test reform has large effects, while the pension system maturation has no significant effects. The findings confirm that 67-69 year olds can adjust their work efforts to economic incentives, but do so only to thoses related to current income and not to future pensions.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 698.
Date of creation: Jul 2012
Date of revision:
labor supply; retirement earnings test; social security wealth; difference-indifferences;
Find related papers by JEL classification:
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-07-29 (Economics of Ageing)
- NEP-ALL-2012-07-29 (All new papers)
- NEP-DEM-2012-07-29 (Demographic Economics)
- NEP-LAB-2012-07-29 (Labour Economics)
- NEP-LMA-2012-07-29 (Labor Markets - Supply, Demand, & Wages)
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