The Retirement Incentive Effects of Canada's Income Security Programs Kevin Milligan ~ Vancouver School of Economics ~ University of British Columbia

The Retirement Incentive Effects of Canada's Income Security Programs

with Michael Baker and Jonathan Gruber.
Canadian Journal of Economics, Vol. 36, No. 2 (May, 2003), pp. 261-290.
Google scholar entry.

Abstract:

Canada has a large income security system for retirement that provides significant and widely varying disincentives to work at older ages. We provide an empirical analysis of the retirement incentives of the Canadian Income Security system using a new administrative data base. We find that the work disincentives inherent in the Canadian Income Security system have significant impacts on retirement. This suggests that program reform can play a role in responses to fiscal pressures. We also demonstrate the importance of controlling for lifetime earnings in retirement models. Specifications without these controls overestimate the effects of the Income Security system. JEL: H55, J26

Versions:

Published version, May, 2003: DOI.

NBER Working Paper No. 8658, March, 2002: Abstract/Paper.


Return to Research Page.
kevin.milligan@ubc.ca ~ Home Page ~ Vancouver School of Economics ~ UBC