Retirement Incentives in Belgium: Estimations and Simulations Using Share Data

26 Pages Posted: 18 May 2013

See all articles by Alain Jousten

Alain Jousten

University of Liege; IZA Institute of Labor Economics; Netspar; International Monetary Fund (IMF)

Mathieu Lefèbvre

University of Strasbourg

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Abstract

The paper studies retirement behavior of wage‐earners in Belgium – for the first time using rich survey data to explore retirement incentives as faced by individuals. Specifically, we use SHARE data to estimate a model à la Stock and Wise (1990). Exploring the longitudinal nature of SHARELIFE, we construct measures of financial and non‐financial incentive. Our analysis explicitly takes into account the different take‐up rates of the various early retirement exit paths across time and ages. The results show that financial incentives play a strong role. Health and education also matter, as does regional variation – though the latter in an unexpected way. A set of policy simulations illustrate the scope and also the limits associated with selective parametric reforms.

Keywords: pensions, social security, disability, early retirement, unemployment, labor force participation

JEL Classification: H55, J21, J26, J14

Suggested Citation

Jousten, Alain and Lefèbvre, Mathieu, Retirement Incentives in Belgium: Estimations and Simulations Using Share Data. IZA Discussion Paper No. 7387, Available at SSRN: https://ssrn.com/abstract=2266814 or http://dx.doi.org/10.2139/ssrn.2266814

Alain Jousten (Contact Author)

University of Liege ( email )

Place des Orateurs 3
Batiment B31
4000 Liege
Belgium
+32 4 366 3198 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Mathieu Lefèbvre

University of Strasbourg ( email )

Strasbourg
France

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