Pension Reform and Retirement Incentives: Evidence from Austria

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Raab, Roman
pension reform; retirement incentives; Austria; labor force participation; life cycle model; labor supply; Economics
thesis / dissertation description
The scope of this dissertation is to investigate the impact of pension reform on the financial incentives to retire for private sector workers in Austria. How do financial incentives embedded in the Austrian pension system affect individual retirement behavior? Was pension reform effective in changing these financial incentives in order to affect retirement behavior? How would future reform scenarios impact retirement behavior? Micro-estimating the impact of financial incentive measures on the probability of retirement shows that the behavioral response to financial incentives in Austria is relatively large in international comparison. Simulations demonstrate that pension reform was ineffective in providing incentives for delayed retirement. However, there are future reform scenarios that would have a huge impact on retirement behavior by altering the financial incentives.