American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions
American Economic Journal: Economic Policy
vol. 8,
no. 4, November 2016
(pp. 160–82)
Abstract
This paper presents new evidence on the effects of retirement benefits on labor force participation decisions. The analysis is based on a mandated rule for employer-provided retirement benefits in Austria that creates discontinuities in the incentives for workers to delay retirement. The paper presents graphical evidence on labor supply responses and develops a conceptual framework that accounts for the dynamic incentive structure and for adjustment frictions. Using bunching methods, a semi-elasticity of participation is estimated, which ranges from 0.1 to 0.3 and is highest for incentives targeted at a delay in retirement by 6 to 9 months.Citation
Manoli, Day, and Andrea Weber. 2016. "Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions." American Economic Journal: Economic Policy, 8 (4): 160–82. DOI: 10.1257/pol.20140209Additional Materials
JEL Classification
- D14 Household Saving; Personal Finance
- D15 Intertemporal Household Choice; Life Cycle Models and Saving
- H55 Social Security and Public Pensions
- J22 Time Allocation and Labor Supply
- J26 Retirement; Retirement Policies
- J65 Unemployment Insurance; Severance Pay; Plant Closings
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