IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/20123.html
   My bibliography  Save this paper

Pathways to Retirement and the Role of Financial Incentives in Sweden

Author

Listed:
  • Per Johansson
  • Lisa Laun
  • Mårten Palme

Abstract

We study how economic incentives affect labor force exit through different income security programs, old-age pensions as well as income taxes in Sweden. We use the option value for staying in the labor force as a measure of economic incentives and estimate an econometric model for the choice of leaving the labor market. Besides old-age pension, we focus on the Disability Insurance (DI), which is the most important exit path before age 65. By simulating the effect of different probabilities to be admitted DI we show how changes in the stringency of DI admittance affects labor supply among older workers through economic incentives.

Suggested Citation

  • Per Johansson & Lisa Laun & Mårten Palme, 2014. "Pathways to Retirement and the Role of Financial Incentives in Sweden," NBER Working Papers 20123, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20123
    Note: AG
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w20123.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Johansson Per & Laun Lisa & Laun Tobias, 2014. "Screening Stringency in the Disability Insurance Program," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 1-19, July.
    2. David A. Wise, 2012. "Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participation and Reforms," NBER Books, National Bureau of Economic Research, Inc, number wise11-1, June.
    3. 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.
    4. Laun, Tobias & Wallenius, Johanna, 2015. "A life cycle model of health and retirement: The case of Swedish pension reform," Journal of Public Economics, Elsevier, vol. 127(C), pages 127-136.
    5. Hagen, Johannes, 2013. "A History of the Swedish Pension System," Working Paper Series, Center for Fiscal Studies 2013:7, Uppsala University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. repec:spr:jlabrs:v:50:y:2017:i:1:d:10.1007_s12651-017-0223-7 is not listed on IDEAS
    2. Lisa Laun & Mårten Palme, 2018. "The Recent Rise of Labor Force Participation of Older Workers in Sweden," NBER Chapters,in: Social Security Programs and Retirement around the World: Working Longer National Bureau of Economic Research, Inc.
    3. Ulrike Famira-Mühlberger & Ulrike Huemer & Christine Mayrhuber, 2015. "The Impact of Social Security Systems on the Employment Rate of the Elderly in Traditional Welfare States," WIFO Working Papers 499, WIFO.

    More about this item

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nbr:nberwo:20123. 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: () or (Joanne Lustig). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.