Policy Variation, Labor Supply Elasticities, and a Structural Model of Retirement
47 Pages Posted: 20 Dec 2014
Date Written: November 10, 2014
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 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: Suggested Citation