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Retirement in Italy and Norway

Author

Listed:
  • Colombino, Ugo

    (University of Turin, The Department of Economics Cognetti de Martiis)

  • Hernæs, Erik

    (Ragnar Frisch Centre for Economic Research)

  • Jia, Zhiyang

    (Dept. of Economics, University of Oslo)

  • Strom, Steinar

    (Dept. of Economics, University of Oslo)

Abstract

A structural model for retirement and employment based on a flexible, parametric utility function is developed. The model requires only cross section data and is estimated on survey data for Italy and register data for Norway. The estimates indicate that the preference structure among middle-aged Italian males and Norwegian males and females who are approaching retirement has strong similarities. The utility function estimates from a model with no consumption smoothing, seem more reasonable than estimates from a model with a perfect credit market. Policy simulations indicate a somewhat stronger response to cuts in pension benefits in Norway than in Italy.

Suggested Citation

  • Colombino, Ugo & Hernæs, Erik & Jia, Zhiyang & Strom, Steinar, 2003. "Retirement in Italy and Norway," Memorandum 10/2003, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2003_010
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2003/Memo-10-2003.pdf
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    References listed on IDEAS

    as
    1. Gustman, Alan L & Steinmeier, Thomas L, 1986. "A Structural Retirement Model," Econometrica, Econometric Society, vol. 54(3), pages 555-584, May.
    2. Aaberge, Rolf & Colombino, Ugo & Strom, Steinar, 1999. "Labour Supply in Italy: An Empirical Analysis of Joint Household Decisions, with Taxes and Quantity Constraints," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(4), pages 403-422, July-Aug..
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Michele Belloni & Rob Alessie, 2013. "Retirement Choices in Italy: What an Option Value Model Tells Us," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 499-527, August.
    2. Maria I. Marika Santoro, 2006. "Early Announcement of a Public Pension Reform in Italy: Working Paper 2006-01," Working Papers 17588, Congressional Budget Office.
    3. Roberto Leombruni & Matteo Richiardi, 2006. "LABORsim: An Agent-Based Microsimulation of Labour Supply – An Application to Italy," Computational Economics, Springer;Society for Computational Economics, vol. 27(1), pages 63-88, February.

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    More about this item

    Keywords

    Retirement; inter-temporal interpretation; estimates and policy; simulations; Italy; Norway;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • 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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