Early Retirement and Economic Incentives

B-Tier
Journal: Scandanavian Journal of Economics
Year: 2000
Volume: 102
Issue: 3
Pages: 481-502

Authors (3)

Erik Hernoes (not in RePEc) Marte Sollie (not in RePEc) Steinar Strøm (Universitetet i Oslo)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In Norway, early retirement programmes have gradually reduced the retirement age from 67 to 62 for a majority of the labour force. Based on micro data for 1990 and 1992, we estimate a competing‐risk model with three states: full retirement, partial retirement/part‐time work and full‐time work. We then use the estimated model in simulations to study how financial incentives can be strengthened to extend working life. Financial incentives, educational background and industry affiliation are found to influence retirement behaviour. For low and medium incomes, the tax system shifts the incentives heavily towards early retirement and, in particular, towards partial retirement combined with part‐time work.

Technical Details

RePEc Handle
repec:bla:scandj:v:102:y:2000:i:3:p:481-502
Journal Field
General
Author Count
3
Added to Database
2026-01-29