Age-dependent taxation, retirement behavior, adn work hours over the life cycle
Identificadores
URI: http://hdl.handle.net/10481/31590Metadatos
Afficher la notice complèteAuteur
Díaz-Saavedra, JuliánEditorial
Universidad de Granada. Departamento de Teoría e Historia Económica
Materia
Computable general equilibrium Labor supply Retirement Age-dependent taxation
Date
2013-09Referencia bibliográfica
Díaz-Saavedra, J. Age-dependent taxation, retirement behavior, adn work hours over the life cycle. Universidad de Granada. Departamento de Teoría e Historia Económica (2013). (The Papers; 13/09). [http://hdl.handle.net/10481/31590]
Patrocinador
Financial support from the Spanish Ministerio de Ciencia e Innovaci on (ECO2011-25737).Résumé
We use a computable overlapping generations model economy, which matches the stylized facts concerning retirement behavior, to analyze the consequences of three reforms designed to reduce tax rates on the labor supply of older workers. We nd that these reforms increase the participation rates of the elderly and show that the gains, in terms of old age work hours, are non-trivial. However, we also nd that the total labor supply response to the reforms is not so much an increase in total lifetime hours as it is a reallocation of hours over the life cycle. Finally, we show that these reforms, designed to increase the length of the working life of individuals, may not increase output.