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To Work or to Work Out: A Moral–Hazard Interpretation of Labor Supply, Retirement, and Investments in Longevity

Title: To Work or to Work Out: A Moral–Hazard Interpretation of Labor Supply, Retirement, and Investments in Longevity
Authors: Stefan Hupfeld; Jel-classification H
Contributors: The Pennsylvania State University CiteSeerX Archives
Source: http://www.uni-graz.at/socialpolitik/papers/Hupfeld.pdf.
Publication Year: 2008
Collection: CiteSeerX
Subject Terms: Moral Hazard; Tax/Pension System; Investments in Longevity
Description: In a moral–hazard model, an agent engages in three different activities, labelled work, delayed retirement, and work out (investments in longevity). The latter imposes higher effort costs on weekly labor supply, but increases possibilities for life time labor supply. Work out does not accrue to the benefit of the principal. Second best incentives for work out are U–shaped in the agent’s ability, and so is the effort level supplied by the agent. This is supported by recent empirical evidence, showing that longevity is not always monotonously increasing in ability. Incentives for delayed retirement are decreasing in ability.
Document Type: text
File Description: application/pdf
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.399.1523
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.399.1523; http://www.uni-graz.at/socialpolitik/papers/Hupfeld.pdf
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.86146DA8
Database: BASE