We investigate the responsiveness of individual retirement decisions to changes in financial incentives. The causal effect is identified based on the natural experiment generated by an institutional reform. The results of a binary retirement model are robust to alternative model specifications,...

I investigate the incentive effects of disability pensions on the labor supply decision of the elderly in Germany. In the year 2001, a reform decreased the level of benefits and tightened the criteria of eligibility. The purpose of this paper is twofold: First, I estimate transition rates into...

We use reforms in the Swiss public retirement system to identify the responsiveness of retirement timing to financial incentives. A permanent reduction of retirement benefits by 3.4 percent induces more than 70 percent of females to postpone their retirement. The responsiveness of male workers,...