Health, Disability and Pathways into Retirement in Spain

61 Pages Posted: 19 Aug 2011  

Pilar Garcia-Gomez

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Sergi Jimenez-Martin

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Judit Vall Castelló

University of Girona; Universitat Pompeu Fabra - Center for Research in Health and Economics (CRES)

Date Written: May 1, 2011

Abstract

In this paper we analyze the trends in labor force participation and transitions to benefit programs of older workers in relation to health trends as well as recent Social Security reforms. Our preliminary conclusions are pessimistic regarding the effect of health improvements on the labor market attachment of older workers since we show that despite the large improvements in the mortality rates among older individuals in Spain, the employment rates of individuals older than fifty-five remain lower than the ones observed in the late 1970s. Some caution should remain in our conclusions as the evidence on health trends is inconclusive. Regarding the effect of Social Security reforms, we find that both the 1997 and the 2002 reform decreased the stock into old-age benefits at the cost of an increased share of the participation into disability. Finally, we find that there was a significant increase in the outflow from employment into disability after the 2002 reform.

Keywords: disability, pension, health, reform

JEL Classification: J11, I18, H55

Suggested Citation

Garcia-Gomez, Pilar and Jimenez-Martin, Sergi and Castelló, Judit Vall, Health, Disability and Pathways into Retirement in Spain (May 1, 2011). Netspar Discussion Paper No. 05/2011-042. Available at SSRN: https://ssrn.com/abstract=1912431 or http://dx.doi.org/10.2139/ssrn.1912431

Pilar Garcia Gomez (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Sergi Jimenez-Martin

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34) 93 542 16 67 (Phone)
(34) 93 542 17 46 (Fax)

Judit Vall Castelló

University of Girona ( email )

Girona, 17071
Spain

Universitat Pompeu Fabra - Center for Research in Health and Economics (CRES) ( email )

Ramon Trias Fargas, 25-27
Barcelona, 08005
Spain

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