Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/47336 
Year of Publication: 
2009
Series/Report no.: 
Memorandum No. 2009,25
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
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.
Subjects: 
Retirement earnings test
Benefit entitlement
Labour supply behaviour
Heterogeneity
JEL: 
J14
H55
Document Type: 
Working Paper

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