Raising the Age of Retirement: An Example of Political Ratchet Effect
18 Pages Posted: 8 Mar 2012
Date Written: March 31, 2005
Political resistance to a progressive increase in the retirement age is widespread in a number of European countries. We present a simple model explaining why such a reform can be opposed even when it is profitable to a majority of citizens. Then, we try to explain the existence of wide differences in the average length of retirement across countries and over time.
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