Assessing the effects of early retirement programs
Working paper
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http://hdl.handle.net/11250/162764Utgivelsesdato
2000-04Metadata
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Sammendrag
We investigate induced retirement effects of the Norwegian early retirement program ”AFP”
and emphasize effects caused by relocations of some individuals from disability pension to AFP.
Our theoretical model predicts that AFP unambigously induces more early retirement. The
substitution effect towards early retirement is strongest for low income individuals. Using a
longitudinal sample, we demonstrate that i) economic incentives influence the retirement
decision, ii) there is a significant net induced retirement effect and the magnitude is inversely
related to income, iii) approximately 28 and 8 per cent of the AFP pensioners would otherwise have been disabled or unemployed.
Utgiver
Norwegian School of Economics and Business Administration. Department of EconomicsSerie
Discussion paper2000:4