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Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions

  • Day Manoli
  • Andrea Weber

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.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2014/wp-cesifo-2014-01/cesifo1_wp4619.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4619.

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Date of creation: 2014
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Handle: RePEc:ces:ceswps:_4619
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