Do Changes in Pension Incentives Affect Retirement? A Longitudinal Study of Subjective Retirement Expectations

TitleDo Changes in Pension Incentives Affect Retirement? A Longitudinal Study of Subjective Retirement Expectations
Publication TypeJournal Article
Year of Publication2004
AuthorsChan, S, Stevens, AHuff
JournalJournal of Public Economics
Volume88
Pagination1307-1333
Call Numberpubs_2003_Chan_SJPubEcon.pdf
KeywordsExpectations, Pensions
Abstract

This paper investigates the responsiveness of individuals retirement decisions to forward-looking measures of pension accumulations. In contrast to previous research, we use within-person variation in retirement incentives and are able to control for unobserved heterogeneity in tastes for retirement by studying a panel of subjective retirement expectations. We confirm that individuals do respond as expected to pension incentives, even when we control for individual fixed-effects. However, the magnitude of these responses differ when estimated from models based on within-person versus cross-sectional variation: the inclusion of fixed effects reduces the response by about half.

Notes

National Science Foundation, grants 9905275 and 9907824

URLhttp://homepages.nyu.edu/ sc87/chanstevens_retirementexpectations.pdf
Endnote Keywords

Pension/Retirement Expectations

Endnote ID

10562

Citation Key6911