Voluntary pension savings: the effects of the Finnish tax reform on savers' behaviour

Jarkko Harju

No 7, Working Papers from VATT Institute for Economic Research

Abstract: Many countries tax voluntary pension savings using the so-called EET model, based on tax-deductible savings and taxable withdrawals. In Finland the tax reform of 2005 changed the tax rate schedule from progressive to proportional, while the basic structure of the EET model was retained. This paper is an empirical study of changes in savers' behaviour as a result of the reform using individual level data. The econometric estimations indicate that the reform altered pension saving behaviour by reducing the labour income and age effects on saving contributions in a statistically significant way. Also, the reform reduced the number of pension savers among high income-earners.

Keywords: Voluntary pension savings; tax reform; tax incentives; Taxation; Verotus; Taxation and Social Transfers; Julkisen talouden rahoitus ja tulonsiirrot (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-age, nep-lab and nep-pbe
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.doria.fi/handle/10024/148746

Related works:
Working Paper: Voluntary pension savings: the effects of the finnish tax reform on savers’ behaviour (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fer:wpaper:7

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from VATT Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Anita Niskanen ().