Flexible Pensions and Labor Force Withdrawal
Link to article:
Authors:
Hernæs, Erik, Zhiyang Jia, John Piggott and Trond Christian Vigtel
Year:
2019
Reference:
Andre skrifter
WP 2019/3, Cepar
Summary
This paper studies the effect on the labor supply decisions of senior workers of reducing the eligibility age of retirement combined with actuarial neutrality, based on one particular group of private sector workers. In the 2011 Norwegian pension reform they had a fixed pension access age of 67 replaced by a flexible access age from 62 with constant present value of benefits. In a non-linear difference-in-difference approach, exploiting the absence of earnings tests, we find no effect on labor force participation. Aggregate earnings fell, mostly driven by high earners reducing their earnings. The increased liquidity seems to facilitate phased retirement.
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 220746
Frisch prosjekt: 1175 - Working life after the Norwegian pension reform
Oppdragsgiver: Norges Forskningsråd
Oppdragsgivers prosjektnr.: 238203
Frisch prosjekt: 1177 - Understanding retirement decisions
