Early Retirement

Tinbergen Institute Working Paper No. TI 2002-031/3

26 Pages Posted: 28 Apr 2002

See all articles by Jan H. M. Nelissen

Jan H. M. Nelissen

Tilburg University, CentER; CentERdata

Date Written: 2002

Abstract

In the Netherlands a transition takes place from early retirement schemes, which are characterized by high implicit tax rates to schemes that have a higher degree of actuarial fairness. in this paper we look at the impact of this change at the labor participation rates of 55- to 65-year-old persons. The analysis has been applied on repeated choices on the basis of stated preferences. We estimate a mixed (or random parameters) logit model. The most important finding is the independent role that is played by the number of years for which has built up pension claims. Its impact does not only run via the discounted value of future pension streams. The results indicate that the change in the early retirement schemes will considerably increase labor participation. A participation rate of 50% for the age group under consideration is within reach.

Keywords: Preretirement, labor participation, mixed logit, stated preferences

JEL Classification: J26

Suggested Citation

Nelissen, Jan H. M. and Nelissen, Jan H. M., Early Retirement (2002). Tinbergen Institute Working Paper No. TI 2002-031/3, Available at SSRN: https://ssrn.com/abstract=306099 or http://dx.doi.org/10.2139/ssrn.306099

Jan H. M. Nelissen (Contact Author)

CentERdata ( email )

PO Box 90153
Tilburg, NL 5000 LE
Netherlands

HOME PAGE: http://www.centerdata.nl

Tilburg University, CentER ( email )

P.O. Box 90153
Department of Economics
5000 LE Tilburg
Netherlands
+31 13 466 3259 (Phone)
+31 13 466 3066 (Fax)

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