Social Security Reforms and the Changing Retirement Behavior in Sweden

24 Pages Posted: 26 Dec 2018

See all articles by Marten Palme

Marten Palme

Stockholm University - Department of Economics; IZA Institute of Labor Economics

Lisa Laun

IFAU - Institute for Labour Market Policy Evaluation

Date Written: December 2018

Abstract

We show how the economic incentives to remain in the labor force induced by Sweden’s public old-age pension system and disability insurance program have changed between 1980 and 2015. Based on earnings histories for different hypothetical individuals corresponding to groups by gender and educational attainments we calculate the following measures: the replacement rate (RR), the social security wealth (SSW), the accrual in the social security wealth from working one additional year as well as the implicit tax rate on working longer (ITAX). We then investigate to what extent the observed changes in these measures concur with changes in employment rates among older workers.

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Suggested Citation

Palme, Marten and Laun, Lisa, Social Security Reforms and the Changing Retirement Behavior in Sweden (December 2018). NBER Working Paper No. w25394, Available at SSRN: https://ssrn.com/abstract=3306104

Marten Palme (Contact Author)

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46163307 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lisa Laun

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
+46 (0)18 471 60 56 (Phone)

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