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How Sensitive Are Retirement Decisions to Financial Incentives? a Stated Preference Analysis

Year: 2013

Type: article

Abstract: SUMMARY We study the effects of financial incentives on retirement decisions using stated preference data. Dutch survey respondents were given hypothetical retirement scenarios describing age(s) of (partial and full) retirement and replacement rate(s). A stylized model is estimated in which utility is the discounted sum of within‐period utilities that depend on employment status and income. Parameters of the utility function vary with observed and unobserved characteristics. Simulations show that the income and substitution effects of pensions as a function of the retirement age are substantial and larger than according to studies using data on actual retirement decisions in the Netherlands. Copyright © 2013 John Wiley & Sons, Ltd.

Source: Journal of Applied Econometrics

DOI: 10.1002/jae.2313

Authors: Arthur Van Soest, Hana Vonkova

Institutions: Tilburg University, Network for Studies on Pensions, Aging and Retirement, Charles University

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

Funders: Network for Studies on Pensions, Aging and Retirement, Grantová Agentura České Republiky, Instituut Gak

OpenAlex ID: W2332893176

FWCI: 10.81

Cites: 36

Cited by: 63

Related to: 10