Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions

Dayanand Manoli and Andrea Weber

American Economic Journal: Economic Policy, 2016, vol. 8, issue 4, 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.

JEL-codes: D14 D91 H55 J22 J26 J65 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/pol.20140209
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Citations: View citations in EconPapers (96)

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Related works:
Working Paper: Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions (2014)
Working Paper: Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions (2011)
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