Benefit Generosity and the Income Effect on Labor Supply: Quasi-Experimental Evidence

Konferenzbeitrag

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Proceedings of the German Development Economics Conference, Berlin 2011 ; No. 23

Classification and Topics

• Classification: Wirtschaft
• Subject: pure income effect ; benefit generosity ; labor supply ; retirement ; poverty ; wage effect

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Danzer, Alexander M.
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/48326
• Last update: 10.03.2025, 11:44 AM CET