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Disabillity Pension Motivated Income Adjustment

Author

Listed:
  • Holen , Dag S.

    (Ragnar Frisch Centre for Economic Research)

Abstract

One element of the Norwegian disability pension system makes the extent to which pension responds to changes in income in the last three years before disablement vary over different income profiles. This special feature is explored in order to identify an individual specific pension incentive for income adjustment. If disability is foreseen, this feature implies that there is a motive for increasing income in the years before disablement and through this increase pensions. Analysis on register data for all persons receiving disability pension 1992-2001 shows that the possibility to affect pensions increases income, indicating that disability to some extent is foreseen and that individuals strategically adjust their income in order to increase their pensions.

Suggested Citation

  • Holen , Dag S., 2007. "Disabillity Pension Motivated Income Adjustment," Memorandum 17/2008, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2008_017
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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2008/Memo-17-2008.pdf
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    References listed on IDEAS

    as
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    4. Mikhail Golosov & Aleh Tsyvinski, 2006. "Designing Optimal Disability Insurance: A Case for Asset Testing," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 257-279, April.
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    7. Diamond, Peter & Sheshinski, Eytan, 1995. "Economic aspects of optimal disability benefits," Journal of Public Economics, Elsevier, vol. 57(1), pages 1-23, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Disability pension; Income adjustment;

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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