Benefit Generosity and the Income Effect on Labor Supply: Quasi-Experimental Evidence
Alexander Danzer ()
No 23, Proceedings of the German Development Economics Conference, Berlin 2011 from Verein für Socialpolitik, Research Committee Development Economics
This paper 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 labor supply among the elderly. In contrast to previous studies, the unusually simple pension eligibility rule allows estimating a pure causal income effect. Applying difference-indifferences and regression discontinuity methods on two nationally representative data sets yields a retirement elasticity of 0.3. Men and women respond at different margins of labor supply but with similar overall effect. Despite retirement incentives being disproportionally large for low income earners old-age poverty declined significantly.
Keywords: pure income effect; benefit generosity; labor supply; retirement; poverty; wage effect (search for similar items in EconPapers)
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 (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Benefit Generosity and the Income Effect on Labour Supply: Quasi‐Experimental Evidence (2013)
Working Paper: Benefit Generosity and the Income Effect on Labour Supply: Quasi-Experimental Evidence (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec11:23
Access Statistics for this paper
More papers in Proceedings of the German Development Economics Conference, Berlin 2011 from Verein für Socialpolitik, Research Committee Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().