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The Effects of Pension Programme Incentives on Retirement Behavior in Denmark

Author

Listed:
  • Bingley, Paul

    (Centre for Labour Market and Social Research, Aarhus School of Business)

  • Gubta, Nabanita Datta

    (Centre for Labour Market and Social Research, Aarhus School of Business)

  • Pedersen, Peder J.

    (Centre for Labour Market and Social Research, Aarhus School of Business)

Abstract

The effects of pension programme incentives on retirement in Denmark are analysed in an option value framework. Using eligibility criteria and detailed entitlement rules for the five main publicly funded retirement programmes, we calculate social security wealth, one year pension accrual and forward-looking incentive measures. Estimation results from an option value analysis are used to simulate the expected outcome from a set of strategic reforms of retirement policy.

Suggested Citation

  • Bingley, Paul & Gubta, Nabanita Datta & Pedersen, Peder J., 2001. "The Effects of Pension Programme Incentives on Retirement Behavior in Denmark," CLS Working Papers 01-8, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    • Handle: RePEc:hhs:aarcls:2001_008
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    File URL: http://www.cls.dk/workingpapers/docfiles/93.pdf
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    References listed on IDEAS

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    1. David A. Wise, 1990. "Issues in the Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise90-1.
    2. John P. Rust, 1990. "Behavior of Male Workers at the End of the Life Cycle: An Empirical Analysis of States and Controls," NBER Chapters, in: Issues in the Economics of Aging, pages 317-382, National Bureau of Economic Research, Inc.
    3. Stock, James H & Wise, David A, 1990. "Pensions, the Option Value of Work, and Retirement," Econometrica, Econometric Society, vol. 58(5), pages 1151-1180, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Westergaard-Nielsen, Niels, 2001. "Danish Labour Market Policy: Is it worth it?," CLS Working Papers 01-10, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    2. Moller Dano, Anne & Ejrnaes, Mette & Husted, Leif, 2005. "Do single women value early retirement more than single men?," Labour Economics, Elsevier, vol. 12(1), pages 47-71, February.

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    More about this item

    Keywords

    Retirement; Public pension programmes; Option value analysis; Pension reform;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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