Policy Variation, Labor Supply Elasticities, and a Structural Model of Retirement

48 Pages Posted: 6 Dec 2014

See all articles by Day Manoli

Day Manoli

University of Texas at Austin

Kathleen J. Mullen

RAND Corporation

Mathis C. Wagner

Boston College

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Abstract

This paper exploits a combination of policy variation from multiple pension reforms in Austria and administrative data from the Austrian Social Security Database. Using the policy changes for identification, we estimate social security wealth and accrual elasticities in individuals' retirement decisions. Next, we use these elasticities to estimate a dynamic programming model of retirement decisions. Finally, we use the estimated model to examine the labor supply and welfare consequences of potential social security reforms.

Keywords: policy variation, retirement, labor supply elasticities

JEL Classification: J26, H55

Suggested Citation

Manoli, Day and Mullen, Kathleen J. and Wagner, Mathis Christoph, Policy Variation, Labor Supply Elasticities, and a Structural Model of Retirement. IZA Discussion Paper No. 8659. Available at SSRN: https://ssrn.com/abstract=2534687

Day Manoli (Contact Author)

University of Texas at Austin ( email )

2317 Speedway
Austin, TX 78712
United States

Kathleen J. Mullen

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States
310-393-0411 x6265 (Phone)
310-260-8156 (Fax)

HOME PAGE: http://works.bepress.com/kathleen_mullen

Mathis Christoph Wagner

Boston College ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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