The Impact of Pension Reform on Employment, Retirement and Disability Insurance Claims

Erik Hernaes (), Simen Markussen, John Piggott and Knut Røed ()
Additional contact information
Erik Hernaes: Ragnar Frisch Centre for Economic Research

No 16256, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We evaluate a comprehensive reform of Norwegian early retirement institutions in 2011 through the lens of a parsimonious random utility choice model. The reform radically changed work incentives and/or pension access-age for some (but not all) workers. We find that improved work incentives caused employment to rise considerably, at the expense of both early retirement and exits through disability insurance. Lower access-age to own pension funds caused a small increase in employment and a large drop in disability program participation. Properly designed pension reforms thus need to take the interplay between old age pension and disability insurance programs into account.

Keywords: program substitution; disability insurance; pension reform (search for similar items in EconPapers)
JEL-codes: H55 J22 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2023-06
New Economics Papers: this item is included in nep-age, nep-hea, nep-lma, nep-pbe and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published - published in: Journal of Population Economics, 2024, 37, 76

Downloads: (external link)
https://docs.iza.org/dp16256.pdf (application/pdf)

Related works:
Journal Article: The impact of pension reform on employment, retirement, and disability insurance claims (2024)
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:iza:izadps:dp16256

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().