Mårten Palme and Ingemar Svensson
- Published in print:
- 2004
- Published Online:
- February 2013
- ISBN:
- 9780226310183
- eISBN:
- 9780226309989
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226309989.003.0011
- Subject:
- Economics and Finance, International
This chapter estimates how economic incentives inherent in the income security system and compulsory old age pensions affect retirement behavior. The results support the view that economic incentives ...
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This chapter estimates how economic incentives inherent in the income security system and compulsory old age pensions affect retirement behavior. The results support the view that economic incentives matter for retirement behavior in the Swedish labor market. The chapter is organized as follows. Section 10.2 describes the institutions that affect the economic incentives for retirement decisions—such as rules for different pension schemes, labor market insurance, housing allowances, and income taxes—during the period 1983–1997. It also provides a descriptive analysis of the frequency of different pathways to permanent exit from the labor market. Section 10.3 reviews previous research on retirement behavior in Sweden. Section 10.4 presents the data set and shows how the different measures of economic incentives are obtained in Section 10.5. The empirical models and estimation results are outlined in Section 10.6. Section 10.7 reports results from simulations of the estimated models. Section 10.8 concludes.Less
This chapter estimates how economic incentives inherent in the income security system and compulsory old age pensions affect retirement behavior. The results support the view that economic incentives matter for retirement behavior in the Swedish labor market. The chapter is organized as follows. Section 10.2 describes the institutions that affect the economic incentives for retirement decisions—such as rules for different pension schemes, labor market insurance, housing allowances, and income taxes—during the period 1983–1997. It also provides a descriptive analysis of the frequency of different pathways to permanent exit from the labor market. Section 10.3 reviews previous research on retirement behavior in Sweden. Section 10.4 presents the data set and shows how the different measures of economic incentives are obtained in Section 10.5. The empirical models and estimation results are outlined in Section 10.6. Section 10.7 reports results from simulations of the estimated models. Section 10.8 concludes.
Paul Oyer
- Published in print:
- 2009
- Published Online:
- February 2013
- ISBN:
- 9780226470504
- eISBN:
- 9780226470511
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226470511.003.0013
- Subject:
- Economics and Finance, International
This chapter presents a few more details on the Swedish labor market, and then conducts formal descriptive analyses to document these changes throughout the 1970s and 1980s. The matched ...
More
This chapter presents a few more details on the Swedish labor market, and then conducts formal descriptive analyses to document these changes throughout the 1970s and 1980s. The matched employee–employer data is used. The analysis of wage levels and wage changes, as well as the trends in worker mobility are elaborated. The chapter shows that the decrease in wage variation during the 1970s and the increase in the 1980s were due to increased variation of wages within firms and increased variation across firms. In addition, people in the low part of the wage distribution have the least to lose by changing jobs, and this relationship gets stronger all the way to the bottom of the wage distribution within firms. The job turnover and wage compression trends are strong for both blue- and white-collar workers in Sweden.Less
This chapter presents a few more details on the Swedish labor market, and then conducts formal descriptive analyses to document these changes throughout the 1970s and 1980s. The matched employee–employer data is used. The analysis of wage levels and wage changes, as well as the trends in worker mobility are elaborated. The chapter shows that the decrease in wage variation during the 1970s and the increase in the 1980s were due to increased variation of wages within firms and increased variation across firms. In addition, people in the low part of the wage distribution have the least to lose by changing jobs, and this relationship gets stronger all the way to the bottom of the wage distribution within firms. The job turnover and wage compression trends are strong for both blue- and white-collar workers in Sweden.
