Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions

Dayanand Manoli, Andrea Weber

Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung

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.
OriginalspracheEnglisch
Seiten (von - bis)160 - 182
FachzeitschriftAmerican Economic Journal: Economic Policy
Jahrgang8
Ausgabenummer4
DOIs
PublikationsstatusVeröffentlicht - 2016

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