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Title:Should old-age benefits be earnings-tested? PDF Logo
Authors:Määttänen, Niku
Poutvaara, Panu
Issue Date:2006
Series/Report no.:ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1062
Abstract:We study the welfare effects of earnings testing flat-rate old-age benefits in a quantitative overlapping generations model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individuals' expected lifetime utility. Moreover, it also lowers the realized lifetime utilities of those at the bottom of the lifetime utility distribution.
Subjects:Social security
Retirement
Means-testing
Computational mod
JEL:H55
J26
C68
Document Type:Working Paper
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy

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