Nonparametric evidence on the effects of financial incentives on retirement decisions

Day Manoli, Andrea Weber

Research output: Contribution to journalArticlepeer-review

Abstract (may include machine translation)

This paper presents new evidence on the effects of retirement benefits on labor force participation decisions. The analysis is based on a mandated rule for employer-provided retirement benefits in Austria that creates discontinuities in the incentives for workers to delay retirement. The paper presents graphical evidence on labor supply responses and develops a conceptual framework that accounts for the dynamic incentive structure and for adjustment frictions. Using bunching methods, a semi-elasticity of participation is estimated, which ranges from 0.1 to 0.3 and is highest for incentives targeted at a delay in retirement by 6 to 9 months.

Original languageEnglish
Pages (from-to)160-182
Number of pages23
JournalAmerican Economic Journal: Economic Policy
Volume8
Issue number4
DOIs
StatePublished - 1 Nov 2016
Externally publishedYes

Fingerprint

Dive into the research topics of 'Nonparametric evidence on the effects of financial incentives on retirement decisions'. Together they form a unique fingerprint.

Cite this