Template-type: ReDIF-Paper 1.0
Author-Name: Roman Rabb
Author-Email: roman.raab@nuigalway.ie
Author-Homepage: 
Author-Workplace-Name: ICSG - Irish Centre for Social Gerontology, Department of Economics, 
National University of Ireland Galway
Author-Workplace-Homepage: 
Title: Financial Incentives in the Austrian PAYG-Pension System: Micro-Estimation
Abstract: The scope of this paper is to investigate the impact of financial incentives on the retirement decision of 
private sector workers in Austria. How do financial incentives embedded in the Austrian pension system impact individual 
retirement behavior? We are using a unique data set of individual social insurance spells. Micro-estimating the impact of 
financial incentives on the probability of retirement shows that the behavioral response to financial incentives in 
Austria is relatively large in international comparison. Also, there are striking behavioral differences between men 
and women. Using the estimates to simulate the response to reform shows that actual retirement ages could be most 
successfully brought up by a 6 percentage point deduction in pension benefits per year of early retirement.
Keywords:Models with Panel Data, Discrete Regression and Qualitative Choice Models, Social Security and Public Pensions, 
Time Allocation and Labor Supply, Retirement; Retirement Policies.
Length: 36 pages
Creation-Date: 2009-02-01
File-URL: http://icepp.gsu.edu/files/2015/03/ispwp0902.pdf
File-Format:application/pdf
Handle: RePEc:ays:ispwps:paper0902