Is Early Retirement Encouraged by the Employer?: Labor-Demend Effects of Age-Related Collective Fees
In Sweden, employers pay non-wage costs for their workforce in the form of legislated employment tax and collective fees. For parts of the workforce, the collective fees are progressive with respect to the employee’s age and wage. The objective of this paper is to examine how non-wage costs affect voluntary early retirement. To this end we use a large longitudinal employer–employee matched data set with administrative records of the private sector in Sweden. We exploit the variation in collective fee costs across companies to identify employer incentives to encourage early retirement. The results from the instrumental variable estimator suggest that a 1 percentage point increase in non-wage costs in relation to wage costs increases retirement by 6 percent. Further, given the wage sum and workforce structure, large firms spend more on non-wage compensation than small firms. The share of non-wage costs in relation to the wage sum is also positively linked to net employment growth.
|Date of creation:||11 Apr 2011|
|Date of revision:|
|Note:||ISSN: 1652-120X; ISBN: 978-91-85619-82-5|
|Contact details of provider:|| Postal: |
Phone: 08-402 12 00
Fax: 08-24 50 14
Web page: http://www.framtidsstudier.se
More information through EDIRC
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.:
- Cervini-Plá, María & Ramos, Xavier & Ignacio Silva, José, 2014.
"Wage effects of non-wage labour costs,"
European Economic Review,
Elsevier, vol. 72(C), pages 113-137.
- Cervini, María & Ramos, Xavier & Silva, José I., 2011. "Wage effects of non-wage labour costs," MPRA Paper 34033, University Library of Munich, Germany.
- Cervini-Plá, María & Ramos, Xavi & Silva, José I., 2010. "Wage Effects of Non-Wage Labour Costs," IZA Discussion Papers 4882, Institute for the Study of Labor (IZA).
- Daniel Hallberg & Matias Eklöf, 2010. "Do buy-outs of older workers matter?: Estimating retirement behavior with special early retirement offers," International Journal of Manpower, Emerald Group Publishing, vol. 31(3), pages 337-359, July.
When requesting a correction, please mention this item's handle: RePEc:hhs:ifswps:2011_006. 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: (Sabina Nilsson)
If references are entirely missing, you can add them using this form.