Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions

Dayanand Manoli and Andrea Weber

No 17320, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper presents new empirical evidence on the effects of retirement benefits on labor force participation decisions. We use administrative data on the census of private sector employees in Austria and variation from mandated discontinuous changes in retirement benefits from the Austrian pension system. We present graphical evidence documenting labor supply responses to the policy discontinuities. Next, we develop nonparametric procedures to estimate labor supply elasticities based on the graphical evidence and mandated financial incentives. We estimate elasticities of 0.12 for men and 0.38 for women. These relatively low elasticities highlight that many retirement decisions are likely to be affected by factors beyond only financial incentives from retirement benefits.

JEL-codes: H55 J22 J26 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-age, nep-eur, nep-lab and nep-lma
Note: AG LS PE
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Citations: View citations in EconPapers (20)

Published as Day Manoli & Andrea Weber, 2016. "Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 160-182, November.

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Related works:
Journal Article: Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions (2016)
Working Paper: Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions (2014)
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