Pathways to Retirement and the Role of Financial Incentives in Sweden
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.
|Date of creation:||May 2014|
|Date of revision:|
|Publication status:||Forthcoming: Pathways to Retirement and the Role of Financial Incentives in Sweden , Per Johansson, Lisa Laun, Mårten Palme. in Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement , Wise. 2015|
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- Karlström, Anders & Palme, Mårten & Svensson, Ingemar, 2008.
"The Employment Effect of Stricter Rules for Eligibility for DI: Evidence from a Natural Experiment in Sweden,"
Research Papers in Economics
2008:3, Stockholm University, Department of Economics.
- 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.
- Hagen, Johannes, 2013. "A History of the Swedish Pension System," Working Paper Series, Center for Fiscal Studies 2013:7, Uppsala University, Department of Economics.
- Laun, Tobias & Wallenius, Johanna, 2012. "A Life Cycle Model of Health and Retirement: The Case of Swedish Pension Reform," SSE/EFI Working Paper Series in Economics and Finance 741, Stockholm School of Economics.
- 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, Abril.
- 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 19, July.
- Johansson, Per & Laun, Lisa & Laun, Tobias, 2013. "Screening stringency in the disability insurance program," Working Paper Series 2013:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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