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Early Retirement Policy in the Presence of Competing Exit Pathways: Evidence from Pension Reforms in Finland
Author(s) -
Kyyrä Tomi
Publication year - 2015
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/ecca.12100
Subject(s) - spillover effect , pension , disability pension , unemployment , economics , demographic economics , retirement age , labour economics , pension system , incidence (geometry) , medicine , population , economic growth , macroeconomics , finance , physics , environmental health , optics
I study the effects of changes in the eligibility age thresholds for unemployment and part‐time pensions, and the effect of tightening medical criteria for disability pension eligibility in Finland. Particular attention is paid to the spillover effects of the pension reforms. These pension reforms jointly raised the average age at which workers leave employment by 3.9 months, mainly due to a sharp drop in disability pension enrolment from age 58 upwards and a lower incidence of unemployment at younger ages. These effects are heterogeneous, much of which is attributable to the spillover effects that vary across individuals.