A dynamic programming approach to model the retirement behaviour of blue-collar workers in Sweden
This paper presents an empirical analysis of how Sweden's public old age pension system affects the retirement decision. We focus on male blue-collar workers whose dominant income source as retired comes from the public old age pension system. We develop a dynamic programming model using the rules for the public pension system. In addition to the effects of economic incentives through the pension systems the DP model also measures the effect of the mandatory retirement age of 65-which applies to most parts of Sweden's labour market-on retirement behaviour. The estimated model fits within-sample retirement patterns remarkably well. A simulation of a hypothetical reform, where all retirement incentives in the pension schemes are delayed by three years, shows that economic incentives affect retirement behaviour. Copyright © 2004 John Wiley & Sons, Ltd.
Volume (Year): 19 (2004)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://www.interscience.wiley.com/jpages/0883-7252/|
|Order Information:|| Web: http://www3.interscience.wiley.com/jcatalog/subscribe.jsp?issn=0883-7252 Email: |
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.:
- Eric French, 2004.
"The Effects of Health, Wealth and Wages on Labor Supply and Retirement Behavior,"
2004 Meeting Papers
96, Society for Economic Dynamics.
- Eric French, 2005. "The Effects of Health, Wealth, and Wages on Labour Supply and Retirement Behaviour," Review of Economic Studies, Oxford University Press, vol. 72(2), pages 395-427.
- Eric French, 2000. "The effects of health, wealth, and wages on labor supply and retirement behavior," Working Paper Series WP-00-2, Federal Reserve Bank of Chicago.
- Karlström, Anders & Palme, Mårten & Svensson, Ingemar, 2002. "The Timing of Retirement and Social Security Reforms: Measuring Individual Welfare Changes," Arbetsrapport 2002:8, Institute for Futures Studies.
- Rust, J., 1994.
"How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets,"
9430, Wisconsin Madison - Social Systems.
- John Rust & Christopher Phelan, 1997. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Econometrica, Econometric Society, vol. 65(4), pages 781-832, July.
- John Rust & Christopher Phelan, 1994. "How Social Security and Medicare Affect Retirement Behavior in a World of Incomplete Markets," Public Economics 9406005, EconWPA, revised 06 Jul 1994.
- Palme, Mårten & Svensson, Ingemar, 2001.
"Income Security Programs and Retirement in Sweden,"
SSE/EFI Working Paper Series in Economics and Finance
422, Stockholm School of Economics.
When requesting a correction, please mention this item's handle: RePEc:jae:japmet:v:19:y:2004:i:6:p:795-807. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.