Benefit Generosity and the Income Effect on Labour Supply: Quasi-Experimental Evidence

Danzer, Alexander M. (September 2013): Benefit Generosity and the Income Effect on Labour Supply: Quasi-Experimental Evidence. In: The Economic Journal, Bd. 123, Nr. 571: S. 1059-1084

Abstract

This study uses an unanticipated, exogenous doubling of the legal minimum pension in Ukraine as a unique quasi-experiment to evaluate the income effect on various aspects of labour supply among the elderly. In contrast to previous studies, the unusually simple pension eligibility rule allows estimating a pure causal income effect. Applying reduced form difference-in-differences and regression discontinuity as well as instrumental variable methods on two nationally representative data sets yields a retirement semi-elasticity of 0.1-0.2. Men and women respond at different margins of labour supply but with similar overall effect.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Lehrstühle > Juniorprofessur für Volkswirtschaftslehre
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• Sprache: Englisch