How Sensitive Are Retirement Decisions to Financial Incentives: A Stated Preference Analysis
We study effects of financial incentives on the retirement age using stated preference data. Dutch survey respondents were given hypothetical retirement scenarios describing age(s) of (partial and full) retirement and replacement rate(s). A structural model is estimated in which utility is the discounted sum of within period utilities that depend on employment status and income. Parameters of the utility function vary with observed and unobserved characteristics. Simulations show that the income and substitution effects of pensions as a function of the retirement age are substantial and larger than according to studies using data on actual retirement decisions.
|Date of creation:||Oct 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
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.:
- David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
- repec:dgr:kubcen:200858 is not listed on IDEAS
- Arthur van Soest & Arie Kapteyn & Julie Zissimopoulos, 2006.
"Using Stated Preferences Data to Analyze Preferences for Full and Partial Retirement,"
345, RAND Corporation Publications Department.
- van Soest, Arthur & Kapteyn, Arie & Zissimopoulos, Julie, 2007. "Using Stated Preferences Data to Analyze Preferences for Full and Partial Retirement," IZA Discussion Papers 2785, Institute for the Study of Labor (IZA).
- Arthur van Soest & Arie Kapteyn & Julie Zissimopoulos, 2006. "Using Stated Preferences Data to Analyze Preferences for Full and Partial Retirement," DNB Working Papers 081, Netherlands Central Bank, Research Department.
- Jonathan Gruber & Kevin Milligan & David A. Wise, 2010.
"Introduction and Summary,"
in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 1-45
National Bureau of Economic Research, Inc.
- Jeffrey R. Brown & Courtney C. Coile & Scott J. Weisbenner, 2006.
"The Effect of Inheritance Receipt on Retirement,"
NBER Working Papers
12386, National Bureau of Economic Research, Inc.
- repec:cup:cbooks:9780521788304 is not listed on IDEAS
- Mauro Mastrogiacomo & Rob Alessie & Maarten Lindeboom, 2004. "Retirement behaviour of Dutch elderly households," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 777-793.
- Klaas de Vos & Arie Kapteyn, 2004. "Incentives and Exit Routes to Retirement in the Netherlands," NBER Chapters, in: Social Security Programs and Retirement around the World: Micro-Estimation, pages 461-498 National Bureau of Economic Research, Inc.
- Lumsdaine, Robin L. & Mitchell, Olivia S., 1999.
"New developments in the economic analysis of retirement,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307
- Robin L. Lumsdaine & Olivia S. Mitchell, . "New Developments in the Economic Analysis of Retirement," Pension Research Council Working Papers 98-8, Wharton School Pension Research Council, University of Pennsylvania.
- Barsky, Robert B, et al, 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 537-79, May.
- Monika Queisser & Edward R. Whitehouse, 2006. "Neutral or Fair?: Actuarial Concepts and Pension-System Design," OECD Social, Employment and Migration Working Papers 40, OECD Publishing.
- Arjan Heyma, 2004. "A structural dynamic analysis of retirement behaviour in the Netherlands," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 739-759.
- Jan Kakes & Dirk Broeders, 2006. "The sustainability of the Dutch pension system," DNB Occasional Studies 406, Netherlands Central Bank, Research Department.
- van Dalen, H.P. & Henkens, K. & Hershey, D.A., 2008. "Are Pension Savings sufficient? Perceptions and Expectations of American and Dutch Workers," Discussion Paper 2008-58, Tilburg University, Center for Economic Research.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp4505. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.