Social Security Reforms and the Changing Retirement Behavior in Sweden
By Marten Palme (Stockholm University – Department of Economics; IZA Institute of Labor Economics), Lisa Laun (IFAU – Institute for Labour Market Policy Evaluation)
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.
Source:@SSRN
