Economic Incentives and Labour Market Transitions of the Aged Finnish Workforce

This PhD thesis is a collection of studies on retirement in Finland. The main purpose is to assess labour market transitions of the aged and focus on the e.ect of the economic incentives. All of the studies are empirical and use large micro panels. The first study describes the main features of the pension system, and tests whether economic incentives have an e.ect on how long individuals stay at work. The second study takes a deeper focus on disability and unemployment, and analyses the e.ect of the disability application rejections. The third study assesses part-time retirements. Financial incentives for full-time work, part-time pension and full-time pension are compared, and estimates are provided for the most likely labour market choice in case the part-time pension is not available. The fourth study considers the e.ect of the incentives to the firm to displace their elderly workers.