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Social Security Reforms and the Changing Retirement Behavior in Sweden

Mårten Palme and Lisa Laun


This chapter is a preliminary draft unless otherwise noted. It may not have been subjected to the formal review process of the NBER. This page will be updated as the chapter is revised.

Chapter in forthcoming NBER book Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, Axel Börsch-Supan and Courtney Coile, editors
Forthcoming from University of Chicago Press
in NBER Book Series - International Social Security

We show how the economic incentives to remain in the labor force induced by Sweden’s public old-age pension system and disability insurance program have changed between 1980 and 2015. Based on earnings histories for different hypothetical individuals corresponding to groups by gender and educational attainments we calculate the following measures: the replacement rate (RR), the social security wealth (SSW), the accrual in the social security wealth from working one additional year as well as the implicit tax rate on working longer (ITAX). We then investigate to what extent the observed changes in these measures concur with changes in employment rates among older workers.

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This chapter first appeared as NBER working paper w25394, Social Security Reforms and the Changing Retirement Behavior in Sweden, Mårten Palme, Lisa Laun
 
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