Understanding retirement decisions

Project managerSimen Markussen
ClientNorges Forskningsråd
Client project no.238203
ParticipantsAsbjørn Goul Bjerrum Andersen
Erik Hernæs
Andreas Kotsadam
Tobias Laun
Marilena Locatelli
John Piggott
Knut Røed
Steinar Strøm
Trond Christian Vigtel
Johanna Wallenius
Tao Zhang
Period2014 - 2019

Project description

This project makes use of detailed administrative data for Norway and use three different methodical approaches. The following questions are central in this project: 1) What are the labour supply effect of completely removing the earnings test against labour earnings for pension take-up for the age group 62-67? 2) What are the labour supply effect of reducing the earliest access age to pension wealth from 67 to 62 in an actuarially adjusted pension system? 3) What are the labour supply effects of introducing longevity adjusted pensions, in fact a downward adjustment of annual pension payments as longevity increases? 4) How are workers using the increased flexibility in the pension system, allowing for a number of part-time choices between full work and full retirement, and how will this in turn affect total labour supply? 5) To which extent are retirement decisions facilitated or limited by external factors? What is the role of family, health and productivity, employers' willingness to accommodate senior workers and aggregate labour demand? 6) Which factors determine pension take-up, conditional on labour supply? What is the role of health, family and risk-preferences? 7) What is the role of progressive taxation for decisions on pension take-up and labour supply? Can preferences for early take-up (more than a "standard homo economicus" model would predict) imply that labour supply effects are moderated because of progressive taxation?


Scientific Journal

Laun, Tobias, Simen Markussen, Trond C. Vigtel and Johanna WalleniusHealth, Longevity and Pension Reform2019Journal of Economic Dynamics and Control Vol 103, 123-157[PDF] [DOI]
Vigtel, Trond C.The retirement age and the hiring of senior workers2018Labour Economics Vol 51, 247-270[PDF] [DOI]
Moscarola, Flavia Coda, Elsa Fornero, Steinar StrømAbsenteeism, childcare and the effectiveness of pension reforms2016IZA Journal of European Labor Studies Open Access, 5:1[PDF] [DOI]
Hernæs, Erik, Simen Markussen, John Piggott, Knut RøedPension reform and labor supply2016Journal of Public Economics Vol 142, 39-55.[PDF] [DOI]

Other publications

Hernæs, Erik, Steinar Strøm, Tao ZhangThe Norwegian Pension Reform in 2011: The Long Term Impact on Take-up of Pension and Labor Supply2019CESifo working paper no 7723.[PDF]
Hernæs, Erik, Zhiyang Jia, John Piggott and Trond Christian VigtelFlexible Pensions and Labor Force Withdrawal2019WP 2019/3, Cepar[PDF]
Stølen, N.M., Fredriksen, D., Hernæs, E., Holmøy, E.The Norwegian NDC Scheme: Balancing Risk Sharing and Redistribution2019Discussion Paper No. 1905, World Bank Group[PDF]
Laun, Tobias, Simen Markussen, Trond C. Vigtel and Johanna WalleniusHealth, Longevity and Pension Reform2018Working Paper 2018:9, Department of Economics, Uppsala University[PDF]