Improving the Labour Market Incentives of Canada's Public Pensions Kevin Milligan ~ Vancouver School of Economics ~ University of British Columbia

Improving the Labour Market Incentives of Canada's Public Pensions

with Tammy Schirle.
Canadian Public Policy, Vol. 34, No. 3 (September 2008).
Google Scholar entry.

Abstract:

This paper examines the incentives for retirement imposed by Canada's public pension system. A series of simulations clearly illustrate the various components of the pension system that create incentives and disincentives for continued work among the elderly. We find the largest work disincentives are generated by the income tested Guaranteed Income Supplement, as it interacts with the Canada/Quebec Pension Plan and with earned income to give the least well-off elderly a reduced financial return to working. We then design and compare several policy reforms that would alleviate some aspects of the incentives problem and partially remove barriers to continued labour market participation among the elderly.

Versions:

Published version, September, 2008: DOI.

Draft, October, 2007: PDF.


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