French, Eric;
Lindner, Attila;
O'Dea, Cormac;
Zawisza, Tom;
(2022)
Labor Supply and the Pension-Contribution Link.
(NBER Working Paper
w30184).
Elsevier BV
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Abstract
We estimate the impact of public pension systems on labor supply far from the normal retirement age by exploiting Poland's switch from a Defined Benefit to a Notional Defined Contribution scheme for men born after 1948. Using the universe of taxpayers and this sharp cohort-based discontinuity in the link between current contributions and future benefits, we estimate an employment elasticity with respect to the return to work of 0.44 for ages 51-54. We estimate a lifecycle model that matches these results. The model implies that the change in the contribution-benefit link from the reform increases employment among those in their 30s but decreases it at older ages, reducing overall labor supply across the lifecycle by 2 months.
| Type: | Working / discussion paper |
|---|---|
| Title: | Labor Supply and the Pension-Contribution Link |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.2139/ssrn.4147254 |
| Publisher version: | https://doi.org/10.2139/ssrn.4147254 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Labor supply, pensions, contribution-benefit link, defined benefit, defined contribution |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10219791 |
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