Long-term Labor Force Exit and Economic Well-being: A Cross-National Comparison of Public and Private Income Support

57 Pages Posted: 17 Jan 2008

See all articles by Richard V. Burkhauser

Richard V. Burkhauser

Cornell University - Department of Policy Analysis & Management (PAM); University of Melbourne, Melbourne Institute

Dean Lillard

Cornell University - Department of Policy Analysis & Management (PAM)

Paola Valenti

affiliation not provided to SSRN

Date Written: May 1, 2001

Abstract

Work in the marketplace is the primary source of income for most households in modern industrialized societies. A permanent or even a long-term exit from work by a household's principal earner is therefore a potentially risky economic event. Here we show that social security income (i.e., income from public, industry-wide, insurance-based, retirement and disability programs) is most important for men who exit at older ages in the four countries (Canada, Germany, Great Britain, and the United States) we consider and less so for men who exit at younger ages. Private pension income in the United States, Canada, and Great Britain plays a much more important role in replacing the labor earnings of men who exit at older ages than in Germany. Net-of-tax household income of surviving spouses is in general higher than would be implied by social security replacement rates.

Suggested Citation

Burkhauser, Richard V. and Lillard, Dean and Valenti, Paola, Long-term Labor Force Exit and Economic Well-being: A Cross-National Comparison of Public and Private Income Support (May 1, 2001). Michigan Retirement Research Center Research Paper No. WP 2001-014, Available at SSRN: https://ssrn.com/abstract=1084661 or http://dx.doi.org/10.2139/ssrn.1084661

Richard V. Burkhauser (Contact Author)

Cornell University - Department of Policy Analysis & Management (PAM) ( email )

120 Martha Van Rensselaer Hall
Ithaca, NY 14853
United States

University of Melbourne, Melbourne Institute ( email )

Level 5, FBE Building, 111 Barry Street
161 Barry Street
Carlton, VIC 3053
Australia

Dean Lillard

Cornell University - Department of Policy Analysis & Management (PAM) ( email )

120 Martha Van Rensselaer Hall
Ithaca, NY 14853
United States

Paola Valenti

affiliation not provided to SSRN

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