Labour supply response of a retirement earnings test reform

Arbeitspapier

Norwegian administrative data are used to evaluate the impact of a doubling of the threshold in the earnings test on the labour force activity. We find no impact on labour market participation, but positive effects on earnings. The effect increases with exposure to the reform and is stronger for individuals with earnings around the threshold and with high education. Individuals who remain active until retirement age respond more to the reform than those who left labour force earlier. The results indicate both substantial labour supply responsiveness among elderly, and heterogeneity with respect to preferences, labour market options or both.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Memorandum ; No. 2009,25

Classification and Topics

• Classification: Wirtschaft ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination ; Social Security and Public Pensions
• Subject: Retirement earnings test ; Benefit entitlement ; Labour supply behaviour ; Heterogeneity ; Altersgrenze ; Gesetzliche Rentenversicherung ; Ältere Arbeitskräfte ; Arbeitsangebot ; Norwegen

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hernæs, Erik ; Jia, Zhiyang
• Event: Veröffentlichung
• (who): University of Oslo, Department of Economics
• (where): Oslo
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/47336
• Last update: 10.03.2025, 11:42 AM CET