Colombino, Ugo Hernæs, Erik Jia, Zhyiang Strøm, Steinar
Year of Publication:
Memorandum, Department of Economics, University of Oslo 2003,10
A structural model for retirement and employment based on a flexible, parametric utility function is developed. The model requires only cross section data and is estimated on survey data for Italy and register data for Norway. The estimates indicate that the preference structure among middle-aged Italian males and Norwegian males and females who are approaching retirement has strong similarities. The utility function estimates from a model with no consumption smoothing, seem more reasonable than estimates from a model with a perfect credit market. Policy simulations indicate a somewhat stronger response to cuts in pension benefits in Norway than in Italy.
Retirement inter-temporal interpretation estimates and policy simulations Italy Norway