Do tax subsidies for retirement saving affect total private saving? New evidence on middle-income workers
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Do tax subsidies for retirement saving affect total private saving? New evidence on middle-income workers. / Christensen, Camilla Skovbo; Ellegaard, Bastian Emil.
In: The Scandinavian Journal of Economics, Vol. 125, No. 4, 2023, p. 933-955.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Do tax subsidies for retirement saving affect total private saving?
T2 - New evidence on middle-income workers
AU - Christensen, Camilla Skovbo
AU - Ellegaard, Bastian Emil
PY - 2023
Y1 - 2023
N2 - We exploit exogenous variation from a pension reform in Denmark to estimate the effect of tax subsidies on total private saving. We present new evidence on individuals in the middle of the income distribution and show that a reduction in tax subsidies for retirement saving reduces total private saving. The reform changed the tax incentives for saving in the pension scheme that holds the highest tax advantage for middle-income workers in Denmark. We find that for each unit of reduced saving in this pension scheme, only 64 percent is substituted to other types of saving.
AB - We exploit exogenous variation from a pension reform in Denmark to estimate the effect of tax subsidies on total private saving. We present new evidence on individuals in the middle of the income distribution and show that a reduction in tax subsidies for retirement saving reduces total private saving. The reform changed the tax incentives for saving in the pension scheme that holds the highest tax advantage for middle-income workers in Denmark. We find that for each unit of reduced saving in this pension scheme, only 64 percent is substituted to other types of saving.
U2 - 10.1111/sjoe.12540
DO - 10.1111/sjoe.12540
M3 - Journal article
VL - 125
SP - 933
EP - 955
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
SN - 0347-0520
IS - 4
ER -
ID: 337286491