If the husband works in the public sector the corresponding take up rate was around 25 percent. A model with forward-looking and utility maximising married couples, where the husband only is eligible for early retirement, has been estimated on these data. The estimated model has been used to predict the labour supply responses of the husband and wife when pensions are taxed as wage earnings. Taxing early benefits as labour earnings induces a substantial decline in retirement and a substantial shift towards full-time work among males.
Females tend to decrease their labour supply a little.
Husbands in poor households tend to increase their labour supply more than husbands in rich households. Poor households are also more negatively hit in terms of loss in expected household welfare than the rich households. Ordering Publications will be available in full text Adobe Acrobat PDF-files from this server. Publications printed as articles or book chapters will for copyright reasons not be availbable in full text. For some documents you may need to download version 4 of the free Acrobat Reader.