Show simple item record

Social Security Rules and Labor Force Participation of Older Workers: Evidence from Chile

dc.contributor.authorEdwards, Alejandra Cox
dc.contributor.authorJames, Estelle
dc.date.accessioned2009-10-06T16:48:55Z
dc.date.available2009-10-06T16:48:55Z
dc.date.issued2009-04
dc.identifier.urihttps://hdl.handle.net/2027.42/64132
dc.description.abstractRecent research has argued that incentives stemming from social security systems influence the worker’s decision to retire. The experience of Chile, which radically changed its system in 1981, offers an opportunity to test this hypothesis. The new system tightened access to early pensions, replaced an actuarially unfair defined benefit plan with an actuarially fair defined contribution plan, exempted pensioners from the pension payroll tax and allowed widows to keep their own pension in addition to their survivor’s benefit. Although the old system is being phased out, since 1981 the two systems have co-existed. Using probit analysis of the behavior of a retrospective sample of new and old system affiliates, we estimate the impact of the new social security rules on the probability of dropping out of the labor force, for older workers. We find large effects. Age of pensioning has been postponed. Labor force participation is much higher among affiliates of the new system compared with the old, especially for pensioners and women. This is not simply due to selection: Aggregate participation rates have increased as the new system’s share of total affiliates has risen.en_US
dc.description.sponsorshipSocial Security Administrationen_US
dc.format.extent272164 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoen_USen_US
dc.publisherMichigan Retirement Research Center, University of Michigan, P.O. Box 1248, Ann Arbor, MI 48104en_US
dc.relation.ispartofseriesWP 2009-202en_US
dc.subjectUM08-23en_US
dc.subjectWP 2009-202en_US
dc.titleSocial Security Rules and Labor Force Participation of Older Workers: Evidence from Chileen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelPopulation and Demography
dc.subject.hlbtoplevelSocial Sciences
dc.contributor.affiliationumCalifornia State University-Long Beachen_US
dc.contributor.affiliationumHudson Instituteen_US
dc.contributor.affiliationumcampusAnn Arboren_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/64132/1/wp202.pdf
dc.owningcollnameRetirement and Disability Research Center, Michigan (MRDRC)


Files in this item

Show simple item record

Remediation of Harmful Language

The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.

Accessibility

If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.