Retirement Behaviour and Retirement Incentives in Spain

32 Pages Posted: 26 Jan 2012  

Isabel Argimón

Banco de España

Marta Botella

Banco de España

Clara I. Gonzalez

Banco de España

Raquel Vegas

FEDEA

Multiple version iconThere are 2 versions of this paper

Date Written: March 26, 2009

Abstract

In this paper we analyze the role that Social Security wealth and incentives play in the transition to retirement in Spain. We use the labour records and other relevant information contained in a newly released database ( Muestra Continua de Vidas Laborales 2006,) to construct incentive measures stemming from the Social Security provisions in relation to retiring at old age and investigate the role played by such incentives and by other socio-economic variables on the retirement hazard. We compute the effects of the reform that took place in 2002, which made the requirements to access an old pension stricter in general. We carry out a dynamic reduced-form analysis of the retirement decision using a duration model.

Our results show that both the pension wealth and substitution effects have a significant role on retirement decisions, but that the latter has less relevance as from the reform introduced in 2002.

Keywords: older workers employment, retirement, public pensions

JEL Classification: J14, J26

Suggested Citation

Argimón, Isabel and Botella, Marta and Gonzalez, Clara I. and Vegas, Raquel, Retirement Behaviour and Retirement Incentives in Spain (March 26, 2009). Available at SSRN: https://ssrn.com/abstract=1991886 or http://dx.doi.org/10.2139/ssrn.1991886

Isabel Argimón (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

HOME PAGE: http://www.bde.es

Marta Botella

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

HOME PAGE: http://www.bde.es/

Clara I. Gonzalez

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Raquel Vegas

FEDEA ( email )

Jorge Juan 46
Madrid, 28001
Spain

HOME PAGE: http://www.fedea.es/

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