Labour Market Responses of Survival Pensioners: Estimating a Labour Supply Model and Predicting the Effect of the Reform

49 Pages Posted: 18 Oct 2007

See all articles by André Decoster

André Decoster

Department of Economics KU Leuven

Kristian Orsini

KU Leuven

Guy Van Camp

KU Leuven - Center for Economic Studies

Date Written: January 12, 2007

Abstract

In this paper we use a sample of administrative data coming from the 'Dataware-house labour market and social protection' and the microsimulation model MIMOSIS to assess the labour supply effects of a reform of the rules for cumulating labour income with survival pension as proposed in the Generations Pact. In a first step we estimate a standard discrete choice labour supply model for several sub groups. Subsequently we model the proposed reform in the tax and benefit rules and we predict the change in desired labour supply of the targeted group. The reform has a significant positive effect on the labour supply of widows, but the effects are quite weak amongst the survivor pensioner with very low benefit, i.e. the group that was originally thought to benefit the most from the reform.

Keywords: Tax-benefit Systems, Microsimulation, Household Labour Supply

JEL Classification: C25, D31, H21, H23, H24, H31, J22

Suggested Citation

Decoster, André and Orsini, Kristian and Van Camp, Guy, Labour Market Responses of Survival Pensioners: Estimating a Labour Supply Model and Predicting the Effect of the Reform (January 12, 2007). Available at SSRN: https://ssrn.com/abstract=1021160 or http://dx.doi.org/10.2139/ssrn.1021160

André Decoster

Department of Economics KU Leuven ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

HOME PAGE: http://www.andredecoster.be

Kristian Orsini (Contact Author)

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant
Belgium

Guy Van Camp

KU Leuven - Center for Economic Studies ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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