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

47 Pages Posted: 20 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

Multiple version iconThere are 2 versions of this paper

Date Written: November 10, 2014

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 identiļ¬cation, we estimate social security wealth and accrual elasticities in individualsā€™ retirement decisions. Next, we use these elasticities to es-timate 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 (November 10, 2014). RAND Working Paper Series WR-1068. Available at SSRN: https://ssrn.com/abstract=2540367 or http://dx.doi.org/10.2139/ssrn.2540367

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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