EconPapers    
Economics at your fingertips  
 

Money also is sunny in a retiree’s world: financial incentives and work after retirement

Svenja Lorenz and Thomas Zwick ()
Additional contact information
Svenja Lorenz: University of Würzburg

Journal for Labour Market Research, 2021, vol. 55, issue 1, 1-17

Abstract: Abstract This paper assesses the impact of financial incentives on working after retirement. The empirical analysis is based on a large administrative individual career data set that includes information about 2% of all German employees subject to social security or in marginal employment until age 67 and their employers in the period 1975–2014. We use the classical labor supply model and differentiate between the impact of (potential) labor and non-labor (pension entitlements) income. A Heckman-type two step selection model corrects for endogeneity. We show that labor income has a positive and non-labor income a negative impact on the decision to work after retirement. Especially individuals who can substantially increase their earnings in comparison to their pension entitlements accordingly have a higher probability to work. Men are more attracted by labor earnings incentives than women. Also individuals who work until retirement are easier attracted to work after retirement by higher labor income than those with gaps between employment exit and retirement. Our results allow the calculation of the impact of changes in taxes on labor and non-labor income and changes in earnings offers by employers on work after retirement for different demographic groups.

Keywords: Work after retirement; Financial incentives; Labor and non-labor income (search for similar items in EconPapers)
JEL-codes: J14 J22 J26 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1186/s12651-021-00304-1 Abstract (text/html)

Related works:
Journal Article: Money also is sunny in a retiree’s world: financial incentives and work after retirement (2021) Downloads
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:spr:jlabrs:v:55:y:2021:i:1:d:10.1186_s12651-021-00304-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12651

DOI: 10.1186/s12651-021-00304-1

Access Statistics for this article

Journal for Labour Market Research is currently edited by Joachim Möller

More articles in Journal for Labour Market Research from Springer, Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-01-07
Handle: RePEc:spr:jlabrs:v:55:y:2021:i:1:d:10.1186_s12651-021-00304-1