Working Paper: NBER ID: w0772
Authors: Olivia S. Mitchell; Gary S. Fields
Abstract: Does retirement behavior react predictably to economic incentives? Evidence on this question would be useful to policy makers responsible for work and retirement programs affecting the elderly. This paper reviews the lessons and limitations of recent economics literature on pensions, earnings, and retirement. Section I develops the life cycle context for analyzing this problem. Theoretical literature is examined in Section II, followed by a review of the empirical literature in Section III. Conclusions appear at the end of each Section.
Keywords: retirement; pensions; earnings; economic incentives
JEL Codes: J26; H55
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| lifetime streams of earnings and pensions (H55) | retirement behavior (J26) |
| age (J14) | valuation of leisure and consumption (D11) |
| valuation of leisure and consumption (D11) | labor supply decisions (J22) |
| pensions (H55) | timing of retirement (J26) |
| contingency provision of pensions (H55) | retirement decision (J26) |
| structure of pension benefits (H55) | timing of retirement (J26) |
| deferring retirement (J26) | pension increases (H55) |
| economic incentives (M52) | retirement behavior (J26) |