Benefit Generosity and the Income Effect on Labour Supply: Quasi-Experimental Evidence
Alexander Danzer ()
Munich Reprints in Economics from University of Munich, Department of Economics
This study uses an unanticipated, exogenous doubling of the legal minimum pension in Ukraine as a unique quasi-experiment to evaluate the income effect on various aspects of labour supply among the elderly. In contrast to previous studies, the unusually simple pension eligibility rule allows estimating a pure causal income effect. Applying reduced form difference-in-differences and regression discontinuity as well as instrumental variable methods on two nationally representative data sets yields a retirement semi-elasticity of 0.1-0.2. Men and women respond at different margins of labour supply but with similar overall effect.
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Published in The Economic Journal 571 123(2013-09): pp. 1059-1084
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Journal Article: Benefit Generosity and the Income Effect on Labour Supply: Quasi‐Experimental Evidence (2013)
Working Paper: Benefit Generosity and the Income Effect on Labor Supply: Quasi-Experimental Evidence (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:20031
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