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- Although Law 27/2011 was approved in August 2011, we consider that these reforms have not affected the responses provided in wave 4 (interviews conducted between February and October 2011) for the following reasons. Firstly, because the processing of the law did not have an easy parliamentary process: Congress faced three amendments to the totality and more than 400 to the article, while Senate also presented three other amendments to the totality and 262 amendments to the articles. Secondly, it was approved that the entry into force of the law was not immediate, but that it was applicable from January 1st , 2013.
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- Black dashed line represents the density functions of working hours per week for non-caregivers before the implementation of the SAAD (2004-2006).
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- Black dashed line represents the predicted probability of early retirement intention for caregivers who are public workers in the period 2007-2011 (after the implementation of the SAAD, but before the budgetary cuts and the early retirement reform).
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- Black dashed vertical line represents the first SHARE wave that gathers the effect of budgetary cuts of SAAD and restrictions in access to early retirement for workers in the private sector .4 .5 .6 .7 .8 .9 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Treat. group & public sector Treat. group & public sector Control group & public sector Control group & private sector All sample .5 .55 .6 .65 .7 .75 .8 .85 .9 .95 1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Treat. group & public sector Treat. group & private sector Control group & public sector Control group & private sector Men .2 .4 .6 .8 1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Treat. group & public sector Treat. group & private sector Control group & public sector Control group & private sector Women Figure 4. Kernel density functions for the number of working hours per wave.
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- Black straight line represents the density functions of working hours per week for non-caregivers after the implementation of the SAAD (2007-2011). 0 .05 .1 .15 .2 Density 20 30 40 50 Worked hours per week Treatment group. 2004-2006 Control group. 2004-2006 Treatment group. 2007-2011 Control group. 2007-2011 Short term: 2004-2011
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- Black straight line represents the predicted probability of early retirement intention for caregivers who are public workers in the period 2013-2017 (after budgetary cuts and early retirement reform). .5 .6 .7 .8 .9 Pr (
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- Figure 5. Effect of the implementation of the SAAD: 2004-2011. Effect of the amount of caregiving subsidy (left) and the ratio between caregiving subsidy and caregiver’s employment income (right).
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- Figure 6. Effect of budgetary cuts in SAAD and early retirement reforms for private workers: 2007-2017. Effect of the amount of caregiving subsidy (left) and the ratio between caregiving subsidy and caregiver’s employment income (right) distinguishing between private and public workers.
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- For a better understanding of the amount of caregiver allowance and disability allowance, they can be compared with minimum wage: 460.50 €/month (2004), 540.90 €/month (2006), 570.60 €/month (2007), 641.40 €/month (2011), 645.30 €/month (2013) (nominal euros).
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- In any case, the reforms of 2011-2013 have served to limit the scope of strictly private early retirement on the social security system. In the regime applicable to early retirement prior to the 2011 reform, access to early retirement from the age of 61 was expressly and exceptionally allowed. Therefore, it was tolerated to anticipate retirement for up to four years.
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In: Boeri T., Börsch-Supan A., Brugiavini A., Disney R., Kapteyn A., Peracchi F. (eds) Pensions: more information, Less Ideology. Springer, Boston, MA. Bolin, K., Lindgren, B., Lundborg, P. (2008). Your next of kin or your own career? Caring and working among the 50+ Europe. Journal of Health Economics 27(3), 718-738.
- Income from employment (caregiver): includes only income from paid work (€1000. 2012). Income from other household members: difference between total household income and income from employment of the caregiver.
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- Means-tested (very strict income threshold) • After 1990: 322 € Age: 18-65 years Additional 161 € for caregiving allowance in case of high disability Home Care (*) • Only for dependents older than 65 years.
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- Note: Predicted probability of early retirement obtained after estimating the short-term model (2004-2011) using the specification M5. Caregiving subsidy in the pre-reform period was lower than 4,000 euros/year. That’s why predicted probabilities have not been computed for higher amounts of the caregiving subsidy in the pre-reform period. Red dashed line represents the predicted probability of retirement intention for women before the implementation of the SAAD (20042006) . Red straight line represents the predicted probability of retirement intention for women after the implementation of the SAAD (20072011) . Black dashed line represents the predicted probability of retirement intention for men before the implementation of the SAAD (20042006) . Black straight line represents the predicted probability of retirement intention for men after the implementation of the SAAD (20072011) .
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- Note: Predicted probability of early retirement obtained after estimating the short-term model (2007-2017) using the specification M5.
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- Red dashed line represents the density functions of working hours per week for caregivers before the implementation of the SAAD (2004-2006).
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- Red dashed line represents the predicted probability of early retirement intention for caregivers who are private workers in the period 2007-2011 (after the implementation of the SAAD, but before the budgetary cuts and the early retirement reform).
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- Red straight line represents the density functions of working hours per week for caregivers after the implementation of the SAAD (2007-2011).
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- Red straight line represents the predicted probability of early retirement intention for caregivers who are private workers in the period 2013-2017 (after budgetary cuts and early retirement reform).
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- Retiremetn intention ) .1 .15 .2 .25 .3 .35 .4 .45 .5 .55 .6 .65 .7 .75 .8 .85 .9 .95 1 Ratio caregiving allowance / income from employment Women. 2004-2006 Men. 2004-2011 Women. 2007-2011 Men. 2007-2011 .6 .65 .7 .75 PR (Retirement intention) 2 2.5 3 3.5 4 4.5 5 5.5 6 Caregiving allowance (€1,000; 2012) Private worker. 2013-2017 Public worker. 2013-2017 Private worker. 2007-2011 Public worker. 2007-2011 .6 .7 .8 .9 Pr (Retirement intention) .1 .2 .3 .4 .5 .6 .7 .8 .9 1 Ratio caregiving allowance / Income from employment Private worker. 2013-2017 Public worker. 2013-2017 Private worker. 2007-2011 Pubic worker. 2007-2011
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- Table 3. Effects of SAAD on early retirement in the short term (2004-2011) and long-term (2004-2017) using as explanatory variables the “amount of caregiving subsidy (CA)” and the “ratio between caregiving subsidy with respect to caregiver’s income”.
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- Table A2. Descriptive statistics. 2004-2017 Total Non caregivers Caregivers Total Private sector Public sector Respondent characteristics Early retirement intention 66.82 66.70 67.04 65.45 67.52 Man 54.82 57.06 60.36 44.99 42.06 Woman 45.18 42.94 39.64 55.01 57.94 Age 58.36 58.33 58.36 58.22 58.56 (4.65) (4.65) (4.70) (4.46) (4.65) Working in Private sector 79.62 79.37 100.00 0.00 80.57 Public sector 20.38 20.63 0.00 100.00 19.43 Working hours per week 37.70 37.95 38.41 36.27 33.03 Reduced workday 23.34 22.69 24.57 15.57 42.25 Professional situation Blue collar 79.76 79.57 85.59 57.54 80.85 White collar 20.24 20.43 14.41 42.46 19.15 Consultation with doctor last year 82.61 82.66 81.02 88.66 82.27
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- Table B2. Heterogeneity results. Estimation of the difference-in-difference model for budgetary cuts and early retirement reform for private workers long-term: 2004-2017.
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- The dependency degree is approximated using Katz’s Index (Katz, 1983). The Katz Index determines functional status as a measurement of the ability to perform six daily living activities independently. We have computed this index using the information on daily living activities provided by SHARE. The Katz’s Index considers six different activities of daily living. The value 0 indicates that the individual performs all activities independently, whereas the value 6 indicates that the individual needs help for all activities.
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- Throughout the two consecutive reforms, between 2011 and 2013, early retirement for private sector workers was restricted, creating a double access route: by company restructuring or by the will of the worker. However, early retirement conditions for public sector workers have not changed. It was possible to access retirement through company restructuring as long as age was lower, by a maximum of four years, than the age that, in each case, was applicable for the person to legally access retirement. Furthermore, the accreditation of an effective contribution period increased from 30 to 33 years of contribution. The pre-reform discounts were maintained so that for each year in advance, the pension was reduced between 6% and 7.5%.
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- Wave field time overview: Wave 1: April-December 2004; Wave 2: October-December 2006 and January-October 2007; Wave 4: January-November 2011; Wave 5: February-October 2013.
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World Population Prospects 2019. Custom data acquired via website. https://population.un.org/wpp/ Van Houtven, C., Coe, N., Skira, M. (2013). The effect of informal care on work and wages. Journal of Health Economics 32(1), 240–252.
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