Earning Distribution and Labour Supply after a Retirement Earnings Test Reform

Erik Hernaes () and Zhiyang Jia

No 01/2012, Memorandum from Oslo University, Department of Economics

Abstract: Norwegian administrative data are used to evaluate the impact of a doubling of the threshold in the retirement earnings test. We find almost no impact on the extensive margin, but a positive effect on the intensive margin. This positive effect is uneven over the earnings distribution, and concentrated on workers around the threshold, increasing with exposure to the reform and leading to a decrease in earnings inequality. Individuals who remain active until retirement age respond more to the reform. Conditional on pre-reform earnings, we find little evidence that individual characteristics such as working histories influence the responsiveness to the reform

Keywords: retirement earnings test; benefit entitlement; labour supply behaviour; heterogeneity (search for similar items in EconPapers)
JEL-codes: H55 J14 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2012-02-07
New Economics Papers: this item is included in nep-age, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.sv.uio.no/econ/english/research/unpubl ... 012/Memo-01-2012.pdf (application/pdf)

Related works:
Journal Article: Earnings Distribution and Labour Supply after a Retirement Earnings Test Reform (2013)
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:hhs:osloec:2012_001

Access Statistics for this paper

More papers in Memorandum from Oslo University, Department of Economics Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway. Contact information at EDIRC.
Bibliographic data for series maintained by Mari Strønstad Øverås ().