The Effect of Pension Growth on the Labor Force Participation of Pensioners in Russia

22 Pages Posted: 8 Aug 2019

See all articles by Victor Lyashok

Victor Lyashok

Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Social Analysis and Forecasting

Date Written: August 8, 2019

Abstract

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

Suggested Citation

Lyashok, Victor, The Effect of Pension Growth on the Labor Force Participation of Pensioners in Russia (August 8, 2019). Higher School of Economics Research Paper No. WP BRP 22/PSP/2019. Available at SSRN: https://ssrn.com/abstract=3434352 or http://dx.doi.org/10.2139/ssrn.3434352

Victor Lyashok (Contact Author)

Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Social Analysis and Forecasting ( email )

Prechistenskaya naberezhnaya 11
Moscow, Moscow 119034
Russia

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