Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-25T19:31:09.505Z Has data issue: false hasContentIssue false
  • English
  • Français

Pension reforms, liquidity constraints and labour supply responses*

Published online by Cambridge University Press:  18 March 2010

UGO COLOMBINO ,
ERIK HERNÆS ,
MARILENA LOCATELLI  and
STEINAR STRØM
UGO COLOMBINO
Affiliation:
Department of Economics Cognetti De Martiis, via Po 53, Turin, Italy (e-mail: ugo.colombino@unito.it)
ERIK HERNÆS
Affiliation:
The Ragnar Frisch Centre for Economic Research, Gaustadalleen 21, 0349Oslo, Norway (e-mail: erik.hernas@frisch.uio.no)
MARILENA LOCATELLI*
Affiliation:
The Ragnar Frisch Centre for Economic Research and the Department of Economics Cognetti De Martiis, via Po 53, Turin, Italy
STEINAR STRØM*
Affiliation:
The Ragnar Frisch Centre for Economic Research and the Department of Economics Cognetti De Martiis, via Po 53, Turin, Italy
*
(e-mail: marilena.locatelli@unito.it)
(e-mail: steinar.strom@econ.uio.no)
Get access Rights & Permissions [Opens in a new window]

Abstract

Labour supply responses among older people are estimated on 1996 cross-section register data covering all Norwegians aged 55–68, with an inter-temporal structural model of retirement decisions. Simulations illustrate the impact of introducing flexible pension take-up with actuarial adjustment. With the option of perfect consumption smoothing via the credit market, the reform which comes into effect in Norway from 2011 will reduce the share of retired persons in the age bracket 60–67 (in the base year 15–16%) by around 3 percentage points. With no consumption smoothing, the reduction will be 0.75 percentage points.

Keywords

D10H55J26Retirementinter-temporal interpretationpolicy simulations
Type
Articles
Information
Journal of Pension Economics & Finance , Volume 10 , Issue 1 , January 2011 , pp. 53 - 74
Copyright
Copyright © Cambridge University Press 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

This article is part of a Strategic programme on retirement, funded by the Norwegian Ministry of Labour and Social Inclusion. Financial support is gratefully acknowledged. The data sets used were received from Statistics Norway, with permission from the Norwegian Data Inspectorate.

References

Aaberge, R., Dagsvik, J. K., and Strøm, S. (1995) Labor supply responses and welfare effects of tax reforms. Scandinavian Journal of Economics, 97: 635–659.CrossRefGoogle Scholar
Aaberge, R., Colombino, U., and Strøm, S. (1999) Labor supply in Italy: an empirical analysis of joint household decisions, with taxes and quantity constraints. Journal of Applied Econometrics, 14: 403–422.3.0.CO;2-4>CrossRefGoogle Scholar
Burtless, G. and Moffit, R. A. (1985) The joint choice of retirement age and postretirement hours of work. Journal of Labor Economics, 3: 209–236.Google Scholar
Colombino, U. (2003) A simple intertemporal model of retirement estimated on Italian cross-section data. Labour, 17: 115–137.Google Scholar
Gustman, A. L. and Steimeier, T. L. (1986) A structural retirement model. Econometrica, 54: 555–584.Google Scholar
Dagsvik, J. K. and Strøm, S. (2006) Sectoral labor supply, choice restrictions and functional form. Journal of Applied Econometrics, 21: 803–826.Google Scholar
Haugen, F. (2000) Incentivvirkninger av skatte og pensjonsregler. Masters thesis, Department of Economics, University of Oslo (in Norwegian only).Google Scholar
Hernæs, E., Jia, Z., and Strøm, S. (2001) Retirement in non-cooperative and cooperative families. CESifo Working Paper Series no. 476, www.CESifo.deGoogle Scholar
Lumsdaine, R., Stock, J., and Wise, D. (1992) Three models of retirement: computational complexity versus predictive validity. In Wise, D. (ed.), Topics in the Economics of Ageing. Chicago: University of Chicago Press, pp. 19–57.Google Scholar
Ministry of Labour and Social Inclusion (2009) Chapter 1 Governmental White Paper No. 5 (2006–2007). http://www.regjeringen.no/upload/AID/temadokumenter/pensjon/2007/Chapter1_Governmental_White_Paper_No_2006–2007.pdfGoogle Scholar
Rust, J. and Phelan, C. (1997) How social security and medicare affect retirement behavior in a world of incomplete markets. Econometrica, 65(4): 781–832.Google Scholar