High effective tax rates on work at and around state pension age deter participation. An example is the ‘earnings test’ operating in several OECD countries. The United States abolished its test for the 65+ age group in 2000. The United Kingdom offers a ‘natural experiment’ of this...

In this paper we model an OLG-economy where labour supply is endogenously determined and where we assume that there are two pension systems, namely, a pay-as-you-go system and a funded system. The main question is whether there is an equilibrium involving an old-age pensions system, partly...

I analyze the effects associated with the introduction of the earnings test on older Czech males’ labor supply in 1996. Using data from the Labor Force Survey, I apply a difference-indifferences estimator to measure the effect of the policy change in the Czech pension scheme using a sample of...

Mandatory pension systems can have a negative impact on individual savings and labor supply decisions. In particular, defined benefit pension schemes that are not actuarially fair, can create incentives for early retirement, and therefore, reduce labor supply and the stock of human capital....

We evaluate the labor market and distributional effects of an increase in the early retirement age (ERA) from 60 to 63 for women. We use a regression discontinuity design which exploits the immediate increase in the ERA between women born in 1951 and 1952. The analysis is based on the German...