TY  - JOUR
AU  - Manoli,Dayanand S.
AU  - Weber,Andrea
TI  - Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 17320
PY  - 2011
Y2  - August 2011
UR  - http://www.nber.org/papers/w17320
L1  - http://www.nber.org/papers/w17320.pdf
N1  - Author contact info:
Dayanand S. Manoli
Department of Economics
University of Texas at Austin
2225 Speedway Stop C3100
Bernard and Audre Rapoport Building Room 1.116
Austin, TX 78712
Tel: 510-684-8978
E-Mail: dsmanoli@austin.utexas.edu

Andrea Weber
University of Mannheim
Economics Department
L7, 3-4
68131 Mannheim
Germany
Tel: +49 621 1811928
E-Mail: a.weber@uni-mannheim.de
AB  - This paper presents new empirical evidence on the effects of retirement benefits on labor force participation decisions. We use administrative data on the census of private sector employees in Austria and variation from mandated discontinuous changes in retirement benefits from the Austrian pension system. We present graphical evidence documenting labor supply responses to the policy discontinuities. Next, we develop nonparametric procedures to estimate labor supply elasticities based on the graphical evidence and mandated financial incentives. We estimate elasticities of 0.12 for men and 0.38 for women. These relatively low elasticities highlight that many retirement decisions are likely to be affected by factors beyond only financial incentives from retirement benefits.
ER  -