The Effects of Pension Program Incentives on Retirement Behavior in Denmark
CLS Working Paper No. 01-08
73 Pages Posted: 4 Feb 2002
Date Written: March 2001
The effects of pension program incentives on retirement in Denmark are analyzed in an option value framework. Using eligibility criteria and detailed entitlement rules for the five main publicly-funded retirement programs, we calculate social security wealth, one year pension accrual and forward-looking incentive measures. Estimation results from an option value analysis are used to simulate the expected outcome from a set of strategic reforms of retirement policy.
Keywords: retirement, public pension programs, option value analysis, pension reform
JEL Classification: H55, J26
Suggested Citation: Suggested Citation