Labor market policy and participation over the life cycle

Empirical evidence shows that labor market decisions depend on financial incentives. For example, generous benefits schemes increase the dependency on such benefits. This moral hazard is present in all types of benefits such as early retirement schemes, unemployment insurance and disability insurance. Moral hazard implies that individuals have less incentives to avoid entering a benefits scheme or to reduce their efforts to leave the benefits scheme. In this report Pieter Gautier and Bas van der Klaauw (both VU University Amsterdam) discuss policy measure aiming at reducing moral hazard problems, which go beyond reducing the generosity of the benefits schemes.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk. Netspar is gericht op een goed geïnformeerd pensioendebat.

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