Diversity of labor supply incentives and retirement: evidence from Ireland

Abstract

This paper gives a first-time assessment of the interaction between retirement programs (public and occupational) and labor force behavior of older people in Ireland. Workers planning retirement face a trade-off between earnings from continued work and benefit payments from income security programs. We simulate retirement incentives embedded in these programs. Retirement pathways typical for Ireland uncover different patterns of the incentives; these patterns correspond to observed retirement behavior. A major source of variation relates to the coverage by occupational pensions.