Policy Variation, Labor Supply Elasticities, and a Structural Model of Retirement

47 Pages Posted: 20 Dec 2014

See all articles by Day Manoli

Day Manoli

University of Texas at Austin

Kathleen J. Mullen

RAND Corporation

Mathis C. Wagner

Boston College

Multiple version iconThere are 2 versions of this paper

Date Written: November 10, 2014

Abstract

This paper exploits a combination of policy variation from multiple pension reforms in Austria and administrative data from the Austrian Social Security Database. Using the policy changes for identification, we estimate social security wealth and accrual elasticities in individuals’ retirement decisions. Next, we use these elasticities to es-timate a dynamic programming model of retirement decisions. Finally, we use the estimated model to examine the labor supply and welfare consequences of potential social security reforms.

Keywords: policy variation, retirement, labor supply elasticities

JEL Classification: J26, H55

Suggested Citation

Manoli, Day and Mullen, Kathleen J. and Wagner, Mathis Christoph, Policy Variation, Labor Supply Elasticities, and a Structural Model of Retirement (November 10, 2014). RAND Working Paper Series WR-1068, Available at SSRN: https://ssrn.com/abstract=2540367 or http://dx.doi.org/10.2139/ssrn.2540367

Day Manoli (Contact Author)

University of Texas at Austin ( email )

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Austin, TX Texas 78712
United States

Kathleen J. Mullen

RAND Corporation ( email )

1776 Main Street
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HOME PAGE: http://works.bepress.com/kathleen_mullen

Mathis Christoph Wagner

Boston College ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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