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Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions

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  • Day Manoli
  • Andrea Weber

Abstract

This paper presents new evidence on the effects of retirement benefits on labor force participation decisions. The analysis is based on a mandated rule for employer-provided retirement benefits in Austria that creates discontinuities in the incentives for workers to delay retirement. We present graphical evidence on labor supply responses and effective financial incentives and develop nonparametric methods to estimate extensive margin labor supply elasticities. Overall, multiple results highlight modest impacts of financial incentives on retirement decisions.

Suggested Citation

  • Day Manoli & Andrea Weber, 2014. "Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions," CESifo Working Paper Series 4619, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4619
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp4619.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Alexander Gelber & Timothy J. Moore & Alexander Strand, 2017. "The Effect of Disability Insurance Payments on Beneficiaries' Earnings," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 229-261, August.
    2. Day Manoli & Andrea Weber, 2016. "Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 160-182, November.
    3. Brown, Kristine M., 2013. "The link between pensions and retirement timing: Lessons from California teachers," Journal of Public Economics, Elsevier, vol. 98(C), pages 1-14.
    4. Selin, Håkan, 2011. "What happens to the husband’s retirement decision when the wife’s retirement incentives change?," Working Paper Series, Center for Fiscal Studies 2011:8, Uppsala University, Department of Economics.
    5. Kucsera, Dénes & Christl, Michael, 2016. "Actuarial neutrality and financial incentives for early retirement in the Austrian pension system," EconStor Preprints 145293, ZBW - German National Library of Economics.
    6. Michael P. Devereux & Li Liu & Simon Loretz, 2014. "The Elasticity of Corporate Taxable Income: New Evidence from UK Tax Records," American Economic Journal: Economic Policy, American Economic Association, vol. 6(2), pages 19-53, May.
    7. Tibor Hanappi, 2012. "Retirement Behaviour in Austria: Incentive Effects on Old-Age Labor Supply," NRN working papers 2012-13, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    8. repec:eee:pubeco:v:152:y:2017:i:c:p:102-118 is not listed on IDEAS
    9. Kristine M. Brown & Ron A. Laschever, 2012. "When They're Sixty-Four: Peer Effects and the Timing of Retirement," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 90-115, July.
    10. Baguelin, Olivier & Remillon, Delphine, 2014. "Unemployment insurance and management of the older workforce in a dual labor market: Evidence from France," Labour Economics, Elsevier, vol. 30(C), pages 245-264.
    11. repec:iab:iabfme:201801_en is not listed on IDEAS
    12. repec:eee:hapoch:v1_457 is not listed on IDEAS
    13. Courtney C. Coile, 2015. "Economic Determinants Of Workers’ Retirement Decisions," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 830-853, September.

    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • 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

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