Employer Compensation Policies, Public Transfer Programmes and Retirement Decisions
The empirical retirement literature measures individual responses to variation in income flows due to public transfers, private individual or employer-provided pensions. The novelty of this paper is to provide a decomposition the incentive effects from these three sources. It is the first time that the effects of pay policies of different employers on retirement outcomes is explicitly modelled and empirically measured.Amodel of individual retirement is set up where employers may influence worker retirement age through pay policy. A conventional dynamic structural model is extended to allow both individual and employer heterogeneity. Empirically, identification of the employer effects on income and retirement is achieved by exploiting a longitudinal sample of Danish small-to-medium sized private sector establishments matched together with all of their workers. Identification of the effect of public transfers on income and retirement is through exogenous eligibility rules and reforms to a public early retirement programme. Employer specific compensation is found to be an important determinant of work and retirement income flows. However, employer effects on retirement age are only found among subsamples where access to public transfers is relatively limited.
|Date of creation:||1999|
|Date of revision:||Jun 2000|
|Publication status:||Published in European Economic Review, February, 2004, Vol 48(1), pages 181-200.|
|Contact details of provider:|| Postal: |
Phone: +44 (0)1782 584581
Fax: +44 (0)1782 717577
Web page: http://www.keele.ac.uk/depts/ec/cer/
More information through EDIRC
|Order Information:|| Postal: Department of Economics, Keele University, Keele, Staffordshire ST5 5BG - United Kingdom|
Web: http://www.keele.ac.uk/depts/ec/cer/pubs_kerps.htm Email:
When requesting a correction, please mention this item's handle: RePEc:kee:keeldp:99/01. 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: (Martin E. Diedrich)The email address of this maintainer does not seem to be valid anymore. Please ask Martin E. Diedrich to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.