Part-Time Pensions and Part-Time Work in Sweden

36 Pages Posted: 8 Sep 2006

See all articles by Eskil Wadensjo

Eskil Wadensjo

Stockholm University - Swedish Institute for Social Research (SOFI); IZA Institute of Labor Economics; Stockholm University Linnaeus Center for Integration Studies (SULCIS)

Date Written: August 2006

Abstract

Sweden had a special partial pension scheme between 1976 and 2001. It was one of three part-time pension schemes in the social security system. The other two were a partial early old-age pension, and a partial disability pension. The special partial pension scheme became very popular with a high take-up rate and was criticized for being too expensive. As a part of the decision on the old age pension scheme in 1994, the partial pension scheme was made less generous, and the scheme was totally abolished from year 2001. The other two options for combining work and receiving a pension continue. In this paper the effect on the total number of hours worked of the subsidized part-time pension system is analysed. The analysis indicates that the effect that people continue to work part-time instead of taking an early exit route is larger than the effect that people who would have continued to work fulltime until ordinary retirement age instead work part-time.

Keywords: part-time work, part-time pension, older workers, labour supply

JEL Classification: H55, J22, J26, J14

Suggested Citation

Wadensjo, Eskil, Part-Time Pensions and Part-Time Work in Sweden (August 2006). IZA Discussion Paper No. 2273, Available at SSRN: https://ssrn.com/abstract=928825 or http://dx.doi.org/10.2139/ssrn.928825

Eskil Wadensjo (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Universitetsvägen 10F
SE-106 91 Stockholm
Sweden

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Stockholm University Linnaeus Center for Integration Studies (SULCIS) ( email )

SE-106 91 Stockholm
Stockholm
Sweden

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