TY  - JOUR
AU  - Johansson, Per
AU  - Laun, Lisa
AU  - Palme, Mårten
TI  - Pathways to Retirement and the Role of Financial Incentives in Sweden
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 20123
PY  - 2014
Y2  - May 2014
DO  - 10.3386/w20123
UR  - http://www.nber.org/papers/w20123
L1  - http://www.nber.org/papers/w20123.pdf
N1  - Author contact info:
Per Johansson
Department of Statistics, Uppsala University
Box 513
SE-751 20 Uppsala
Sweden
E-Mail: Per.Johansson@ifau.uu.se

Lisa Laun
Institute for Evaluation of Labour Market
and Education Policy (IFAU)
Box 513
SE-751 20 Uppsala
Sweden
Tel: +46 (0)18 471 60 56
Fax: +46 (0)18 471 70 71
E-Mail: Lisa.Laun@ifau.uu.se

Mårten Palme
Department of Economics
Stockholm University
SE-106 91 Stockholm
SWEDEN
E-Mail: Marten.Palme@ne.su.se
M1  - published as Per Johansson, Lisa Laun, Mårten Palme. "Pathways to Retirement and the Role of Financial Incentives in Sweden," in David A. Wise, editor, "Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement" University of Chicago Press (2016)

M3  - presented at "International Social Security", September 26-28, 2013
AB  - We study how economic incentives affect labor force exit through different income security programs, old-age pensions as well as income taxes in Sweden. We use the option value for staying in the labor force as a measure of economic incentives and estimate an econometric model for the choice of leaving the labor market. Besides old-age pension, we focus on the Disability Insurance (DI), which is the most important exit path before age 65. By simulating the effect of different probabilities to be admitted DI we show how changes in the stringency of DI admittance affects labor supply among older workers through economic incentives.
ER  -