Authors
Michael Baker, Dwayne Benjamin
Publication date
1999/1/1
Journal
Journal of Public Economics
Volume
71
Issue
1
Pages
27-51
Publisher
North-Holland
Description
We analyze the sequential elimination of retirement/earnings tests from Canada's public pension plans. Our empirical framework potentially overcomes the obstacles encountered analyzing the tests within the context of a national social security system. Our results indicate that the removal of the tests were associated with relatively large shifts from part year full time to full year full time work. We are unable to reconcile these results within the context of a traditional labour supply model. Instead, they are consistent with a model which incorporates fixed costs of work, or labour market rigidities which preclude continuous reductions in labour supply around retirement.
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