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Pension Incentives, Labor Supply and Heterogeneous Pension Systems

Author

Listed:
  • Holen, Dag S.

    (Ragnar Frisch Centre for Economic Research)

Abstract

People with an uncertain health condition might face a double worry. They fear to get disabled, and if they are disabled, that they will receive a low pension. To keep their health they should work less. To improve their disability pension they should work more. This paper demonstrates that the latter effect is the strongest empirically. Thus to protect one self against the income loss of a bad event, the bad event is more likely to happen. Comparing register data from disabled and non-disabled individuals shows that being disabled increases income in the last year before the time of disablement. Further, more generous pension systems increase pre-disablement income even more.

Suggested Citation

  • Holen, Dag S., 2007. "Pension Incentives, Labor Supply and Heterogeneous Pension Systems," Memorandum 18/2008, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2008_018
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    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2008/Memo-18-2008.pdf
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    Cited by:

    1. Holen , Dag S., 2007. "Disabillity Pension Motivated Income Adjustment," Memorandum 17/2008, Oslo University, Department of Economics.
    2. Holen, Dag S., 2007. "It Ain't Necessariy So," Memorandum 19/2008, Oslo University, Department of Economics.

    More about this item

    Keywords

    Disability pension; pension; pension systems;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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