Do tax subsidies for retirement saving affect total private saving? New evidence on middle‐income workers

Christensen, Camilla Skovbo ORCID: 0000-0001-8828-2986 and Ellegaard, Bastian Emil (2023) Do tax subsidies for retirement saving affect total private saving? New evidence on middle‐income workers. Scandinavian Journal of Economics, 125 (4). pp. 933-955. ISSN 0347-0520

Text (Scandinavian J Economics - 2023 - Christensen - Do tax subsidies for retirement saving affect total private saving New (2)) - Published Version Available under License Creative Commons Attribution. Download (487kB)

Abstract

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

Item Type:	Article
Additional Information:	© 2023 The Author(s)
Divisions:	International Inequalities Institute
Date Deposited:	09 Jul 2025 13:15
Last Modified:	09 Jul 2025 18:21
URI:	http://eprints.lse.ac.uk/id/eprint/128738

Actions (login required)

View Item