Discussion Papers no. 717

Labour supply effects of early retirement provision

The main objective of this paper is to estimate labour supply effects of an early retirement programme in Norway. Detailed administrative data are employed in order to characterize full paths towards retirement and account for substitution from other exit routes, such as unemployment and disability insurance. By exploiting a reduction in the lower age limit for early retirement as a source of exogenous variation in individual eligibility I obtain robust difference-in-differences and triple differences estimates indicating that more than two out of three pensioners would still be working at the age of 63 had the age limit been 64 rather than 62. Hence, although successful in creating a more dignified exit route for early leavers, the programme also generated substantial costs in terms of inducing others to retire earlier.

Om publikasjonen

Tittel

Labour supply effects of early retirement provision

Ansvarlig

Ola Lotherington Vestad

Serie og -nummer

Discussion Papers no. 717

Utgiver

Statistics Norway

Emne

Discussion Papers

ISSN

1892-753X

Antall sider

32, i

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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