IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0422.html

Income Security Programs and Retirement in Sweden

Author

Listed:
  • Palme, Mårten

    (Dept. of Economic Statistics, Stockholm School of Economics)

  • Svensson, Ingemar

    (National Social Insurance Board)

Abstract

We examine the effects of economic incentives inherent in pension schemes and income security programs on retirement behavior in the Swedish labor market. We use social security wealth and three alternative measures of accrual (one-year benefit accrual, peak value and option value). The social security system, occupational pensions as well as insurance on the labor market, i.e., unemployment, sickness and disability insurance are considered. We estimate a model using panel data on about 30 000 men and women born between 1927 and 1940, observed between 1983 and 1997. The model is then used to simulate the effects of two alternative systems: one where eligibility for benefits in the prevailing system is delayed by three years and another where replacement levels are reduced.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:hastef:0422
    as

    Download full text from publisher

    File URL: http://swopec.hhs.se/hastef/papers/hastef0422.pdf
    File Function: Complete Rendering
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eklöf, Matias & Hallberg, Daniel, 2004. "Private Alternatives and Early Retirement Programs," Working Paper Series 2004:5, Uppsala University, Department of Economics.
    2. Meghir, Costas & Palme, Mårten & Simeonova, Emilia, 2012. "Education, Health and Mortality: Evidence from a Social Experiment," Research Papers in Economics 2012:4, Stockholm University, Department of Economics.
    3. Håkan Selin, 2017. "What happens to the husband’s retirement decision when the wife’s retirement incentives change?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 432-458, June.
    4. Johannes Hagen, 2018. "The effects of increasing the normal retirement age on health care utilization and mortality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 193-234, January.
    5. Åslund, Olof & Larsson, Fredrik & Laun, Lisa, 2024. "Joining late, leaving early? Immigrant-native disparities in labor market exit," Labour Economics, Elsevier, vol. 89(C).
    6. Gruber, Jonathan & Kanninen, Ohto & Ravaska, Terhi, 2022. "Relabeling, retirement and regret," Journal of Public Economics, Elsevier, vol. 211(C).
    7. Daniel Hallberg & Matias Eklöf, 2010. "Do buy‐outs of older workers matter?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(3), pages 337-359, June.
    8. Mona Larsen & Peder J. Pedersen, 2008. "Pathways to early retirement in Denmark, 1984‐2000," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(5), pages 384-409, August.
    9. Hagen, Johannes, 2016. "What are the Health effects of postponing retirement? An instrumental variable approach," Working Paper Series 2016:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. 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.
    11. Courtney C. Coile & Phillip B. Levine, 2007. "Labor Market Shocks and Retirement: Do Government Programs Matter?," NBER Chapters, in: Public Policy and Retirement, Trans-Atlantic Public Economics Seminar (TAPES), pages 1902-1919, National Bureau of Economic Research, Inc.
    12. Lisa Jönsson & Mårten Palme & Ingemar Svensson, 2012. "Disability Insurance, Population Health, and Employment in Sweden," NBER Chapters, in: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participatio, pages 79-126, National Bureau of Economic Research, Inc.
    13. Ashok Thomas & Luca Spataro, 2013. "Pension funds and Market Efficiency: A review," Discussion Papers 2013/164, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    14. Per Johansson & Lisa Laun & Mårten Palme, 2014. "Pathways to Retirement and the Role of Financial Incentives in Sweden," NBER Chapters, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, pages 369-410, National Bureau of Economic Research, Inc.
    15. Hallberg, Daniel, 2003. "A Description of Routes out of the Labor Force for Workers in Sweden," Working Paper Series 2003:23, Uppsala University, Department of Economics.
    16. Séverine Arnold & Anca Jijiie, 2020. "Retirement Ages by Socio-Economic Class," Risks, MDPI, vol. 8(4), pages 1-40, October.
    17. Landais, Camille & Kolsrud, Jonas & Spinnewijn, Johannes, 2017. "Studying Consumption Patterns using Registry Data: Lessons From Swedish Administrative Data," CEPR Discussion Papers 12402, C.E.P.R. Discussion Papers.
    18. Thomas Aronsson & James R. Walker, 2010. "Labor Supply, Tax Base and Public Policy in Sweden," NBER Chapters, in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 127-158, National Bureau of Economic Research, Inc.
    19. Mårten Palme & Ingemar Svensson, 2010. "Incentives to Retire, the Employment of the Old, and the Employment of the Young in Sweden," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 295-318, National Bureau of Economic Research, Inc.
    20. Linda Kridahl, 2017. "Retirement timing and grandparenthood: A population-based study on Sweden," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 37(31), pages 957-994.
    21. Anders Karlström & Mårten Palme & Ingemar Svensson, 2011. "Assessing the welfare change from a pension reform," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(6), pages 634-657, December.
    22. Roman Raab, 2011. "Financial incentives in the Austrian PAYG-pension system: micro-estimation," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 38(2), pages 231-257, May.
    23. Asch, Beth & Haider, Steven J. & Zissimopoulos, Julie, 2005. "Financial incentives and retirement: evidence from federal civil service workers," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 427-440, February.
    24. Anders Karlstrom & Marten Palme & Ingemar Svensson, 2004. "A dynamic programming approach to model the retirement behaviour of blue-collar workers in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 795-807.
    25. Karlström, Anders & Palme, Mårten & Svensson, Ingemar, 2008. "The employment effect of stricter rules for eligibility for DI: Evidence from a natural experiment in Sweden," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2071-2082, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0422. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Helena Lundin (email available below). General contact details of provider: https://edirc.repec.org/data/erhhsse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.