Discussion Papers no. 698

Disparate effects of immediate and postponed rewards to working

Labor supply on the eve of retirement

We study two recent changes in incentives to work facing 67-69 year old workers in Norway: an earnings test reform which increases current earnings from work, and a pension system maturation which removes pension accrual from work. Within a difference-in-differences framework, we exploit these changes to investigate the effects of economic incentives. We find the earnings test reform has large effects, while the pension system maturation has no significant effects. The findings confirm that 67-69 year olds can adjust their work efforts to economic incentives, but do so only to thoses related to current income and not to future pensions.

Om publikasjonen


Labor supply on the eve of retirement. Disparate effects of immediate and postponed rewards to working


Christian N. Brinch, Erik Hernæs, Zhiyang Jia

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Discussion Papers no. 698


Statistics Norway


Discussion Papers



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Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.