Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108695
Authors: 
Hernæs, Erik
Markussen, Simen
Piggott, John
Røed, Knut
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 8812
Abstract: 
We exploit a comprehensive restructuring of the early retirement system in Norway in 2011 to examine labor supply responses to alternative pension reform strategies relying on improved work incentives (flexibility) or increased access ages (prescription), respectively. We find that increasing the returns to work is a powerful policy tool: The removal of the earnings test at age 63 led to an immediate increase in average annual labor earnings among the affected mature workers by around $14,700 (NOK 90,000). The implied uncompensated labor earnings elasticity (the percentage change in average gross earnings relative to the percentage change in average work-incentives) is around 0.25.
Subjects: 
early retirement
labor supply
pension reform
program evaluation
JEL: 
H55
J22
J26
Document Type: 
Working Paper

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