The Effect of Pension Growth on the Labor Force Participation of Pensioners in Russia
22 Pages Posted: 8 Aug 2019
Date Written: August 8, 2019
This paper examines the impact of the 34% increase in pensions in Russia at the end of 2009 and the beginning of 2010 on the labor market participation of pensioners. Several particular features of the pension system in Russia allow us to estimate the net effect of income from such a reform. For evaluation, we used a method combining difference-in-difference and regression discontinuity methods. The results showed that real pension growth by a third reduced labor force participation rate by 6–7.1% for men and by 6–6.4% for women. The heterogeneity of the impact of this reform was also investigated. Estimates showed that the effect was lower for more educated people or those living in villages and was completely absent among those who rated their health as poor or very bad.
Keywords: pension system, labor force participation, Russia, social security
JEL Classification: H55, J21, J26
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