Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90747
Authors: 
Hernæs, Erik
Jia, Zhiyang
Year of Publication: 
2012
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 01/2012
Abstract: 
Norwegian administrative data are used to evaluate the impact of a doubling of the threshold in the retirement earnings test. We find almost no impact on the extensive margin, but a positive effect on the intensive margin. This positive effect is uneven over the earnings distribution, and concentrated on workers around the threshold, increasing with exposure to the reform and leading to a decrease in earnings inequality. Individuals who remain active until retirement age respond more to the reform. Conditional on pre-reform earnings, we find little evidence that individual characteristics such as working histories influence the responsiveness to the reform.
Subjects: 
retirement earnings test
benefit entitlement
labour supply behaviour
heterogeneity
JEL: 
J14
H55
Document Type: 
Working Paper

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