
Contents
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10.1 Introduction 10.1 Introduction
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10.2 Institutional Background 10.2 Institutional Background
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10.2.1 The Social Security System 10.2.1 The Social Security System
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10.2.2 Occupational Pensions 10.2.2 Occupational Pensions
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Occupational Pensions for Private-Sector Blue-Collar Workers Occupational Pensions for Private-Sector Blue-Collar Workers
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Occupational Pensions for Private-Sector White-Collar Workers Occupational Pensions for Private-Sector White-Collar Workers
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Pensions for Central Government Employees Pensions for Central Government Employees
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Pensions for Local Government Employees Pensions for Local Government Employees
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10.2.3 Disability, Sickness, and Unemployment Insurance 10.2.3 Disability, Sickness, and Unemployment Insurance
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Disability Insurance Disability Insurance
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Sickness Insurance Sickness Insurance
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Unemployment Insurance Unemployment Insurance
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10.2.4 Income Taxes and Housing Allowances 10.2.4 Income Taxes and Housing Allowances
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10.2.5 Mandatory Retirement Rules on the Swedish Labor Market 10.2.5 Mandatory Retirement Rules on the Swedish Labor Market
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10.2.6 Sources of Income after Retirement 10.2.6 Sources of Income after Retirement
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10.3 Research Background 10.3 Research Background
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10.4 Data 10.4 Data
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10.4.1 The Data Set 10.4.1 The Data Set
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10.4.2 Sample Selection 10.4.2 Sample Selection
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10.4.3 Measurement of Variables 10.4.3 Measurement of Variables
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Measuring Date of Retirement Measuring Date of Retirement
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Measuring Other Included Variables Measuring Other Included Variables
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10.5 Construction of Incentive Measures 10.5 Construction of Incentive Measures
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10.5.1 Definitions of the Incentive Measures 10.5.1 Definitions of the Incentive Measures
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10.5.2 Sources of Income after Retirement 10.5.2 Sources of Income after Retirement
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10.5.3 Calculating Retirement Income Components and Income Taxes 10.5.3 Calculating Retirement Income Components and Income Taxes
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10.5.4 Sample Estimates of Different Incentives Measures 10.5.4 Sample Estimates of Different Incentives Measures
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10.6 Empirical Model and Results 10.6 Empirical Model and Results
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10.6.1 Empirical Specification 10.6.1 Empirical Specification
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10.6.2 Sample Characteristics 10.6.2 Sample Characteristics
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10.6.3 Estimation Results 10.6.3 Estimation Results
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10.7 Simulations 10.7 Simulations
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10.8 Conclusions 10.8 Conclusions
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References References
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10 Income Security Programs and Retirement in Sweden
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Published:March 2004
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Abstract
This chapter estimates how economic incentives inherent in the income security system and compulsory old age pensions affect retirement behavior. The results support the view that economic incentives matter for retirement behavior in the Swedish labor market. The chapter is organized as follows. Section 10.2 describes the institutions that affect the economic incentives for retirement decisions—such as rules for different pension schemes, labor market insurance, housing allowances, and income taxes—during the period 1983–1997. It also provides a descriptive analysis of the frequency of different pathways to permanent exit from the labor market. Section 10.3 reviews previous research on retirement behavior in Sweden. Section 10.4 presents the data set and shows how the different measures of economic incentives are obtained in Section 10.5. The empirical models and estimation results are outlined in Section 10.6. Section 10.7 reports results from simulations of the estimated models. Section 10.8 concludes.
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