(This abstract was borrowed from another version of this item.)"> (This abstract was borrowed from another version of this item.)">
[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/h/nbr/nberch/14892.html
   My bibliography  Save this book chapter

The Effects of Social Security Incentives on Retirement in Spain

In: Social Security Programs and Retirement around the World: The Effects of Reforms on Retirement Behavior

Author

Listed:
  • Pilar García-Gómez
  • Sílvia Garcia-Mandicó
  • Sergi Jiménez-Martín
  • Judit Vall-Castelló
Abstract
In this paper, we analyze the extent to what financial incentives have influenced individual and couples retirement decisions over the last two decades in Spain. We use administrative data on earnings histories to create synthetic measures of financial incentives that we link to individual survey data from the European Community Household Panel and the European Union Statistics on Income and Living Conditions. The ocurrence of several major reforms in the period largely facilitates identification. We find that retirement is highly responsive to incentive variables (both ITAX and SSW). We find that a 10% change in the implicit tax rate on working longer increases the probability of retiring by about 0.70 pp (0.90 pp for men and 0.54 for women). Furthermore, we find that couple incentives matter more in husband's retirement decisions than in wife's retirement decisions.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Pilar García-Gómez & Sílvia Garcia-Mandicó & Sergi Jiménez-Martín & Judit Vall-Castelló, 2024. "The Effects of Social Security Incentives on Retirement in Spain," NBER Chapters, in: Social Security Programs and Retirement around the World: The Effects of Reforms on Retirement Behavior, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:14892
    as

    Download full text from publisher

    File URL: http://www.nber.org/chapters/c14892.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pilar García-Gómez & Sergi Jiménez-Martín & Judit Vall Castelló, 2018. "Trends in Labor Force Participation of Older Workers in Spain," NBER Chapters, in: Social Security Programs and Retirement around the World: Working Longer, pages 205-230, National Bureau of Economic Research, Inc.
    2. Alfonso Sánchez-Martin & J. García-Pérez & Sergi Jiménez-Martín, 2014. "Delaying the Normal and Early Retirement Ages in Spain: Behavioural and Welfare Consequences for Employed and Unemployed Workers," De Economist, Springer, vol. 162(4), pages 341-375, December.
    3. Michele Boldrin & Sergi Jimenez-Martin & Franco Peracchi, 1999. "Social Security and Retirement in Spain," NBER Chapters, in: Social Security and Retirement around the World, pages 305-353, National Bureau of Economic Research, Inc.
    4. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1.
    5. Jonathan Gruber & David A. Wise, 1999. "Introduction to "Social Security and Retirement around the World"," NBER Chapters, in: Social Security and Retirement around the World, pages 1-35, National Bureau of Economic Research, Inc.
    6. Courtney Coile, 2018. "Working Longer in the U.S.: Trends and Explanations," NBER Working Papers 24576, National Bureau of Economic Research, Inc.
    7. Jean-Olivier Hairault & Francois Langot & Thepthida Sopraseuth, 2010. "Distance to Retirement and Older Workers' Employment: The Case for Delaying the Retirement Age," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1034-1076, September.
    8. Isabel Cairó-Blanco, 2010. "An empirical analysis of retirement behaviour in Spain: partial versus full retirement," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 1(3), pages 325-356, July.
    9. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1.
    10. Pilar García-Gómez & Sergi Jiménez Martín & Judit Vall Castelló, 2018. "Trends in Labor Force Participation of Older Workers in Spain 1980-2015," Studies on the Spanish Economy eee2018-04, FEDEA.
    11. Michele Boldrin & Sergi Jiménez-Martín & Franco Peracchi, 2004. "Micro-Modeling of Retirement Behavior in Spain," NBER Chapters, in: Social Security Programs and Retirement around the World: Micro-Estimation, pages 499-578, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pilar García-Gómez & Sílvia Garcia-Mandicó & Sergi Jiménez-Martín & Judit Vall-Castelló, 2018. "Trends in Employment and Social Security Incentives in the Spanish Pension System, 1980–2016," NBER Chapters, in: Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, pages 317-371, National Bureau of Economic Research, Inc.
    2. Dai, Tiantian & Fan, Hua & Liu, Xiangbo & Ma, Chao, 2022. "Delayed retirement policy and unemployment rates," Journal of Macroeconomics, Elsevier, vol. 71(C).
    3. Ga?ecka-Burdziak, Ewa & Góra, Marek, 2017. "How Do Unemployed Workers Behave Prior to Retirement? A Multi-State Multiple-Spell Approach," IZA Discussion Papers 10680, Institute of Labor Economics (IZA).
    4. Hugo Benítez-Silva & José Ignacio García-Pérez & Sergi Jiménez-Martín, 2014. "Reforming the U.S. Social Security system accounting for employment uncertainty," Economics Working Papers 1455, Department of Economics and Business, Universitat Pompeu Fabra.
    5. García-Pérez, J. Ignacio & Jiménez-Martín, Sergi & Sánchez-Martín, Alfonso R., 2013. "Retirement incentives, individual heterogeneity and labor transitions of employed and unemployed workers," Labour Economics, Elsevier, vol. 20(C), pages 106-120.
    6. Alfonso Sánchez-Martin & J. García-Pérez & Sergi Jiménez-Martín, 2014. "Delaying the Normal and Early Retirement Ages in Spain: Behavioural and Welfare Consequences for Employed and Unemployed Workers," De Economist, Springer, vol. 162(4), pages 341-375, December.
    7. Vermeer, Niels & Mastrogiacomo, Mauro & Van Soest, Arthur, 2016. "Demanding occupations and the retirement age," Labour Economics, Elsevier, vol. 43(C), pages 159-170.
    8. Sílvia Garcia-Mandicó & Sergi Jiménez-Martín, 2020. "Spillovers in pension incentives and the joint retirement behavior of Spanish couples," Working Papers 2020-13, FEDEA.
    9. Raquel Vegas Sánchez & Isabel Argimón & Marta Botella & Clara González, 2013. "Old age pensions and retirement in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(3), pages 273-307, August.
    10. Isabel Cairó-Blanco, 2010. "An empirical analysis of retirement behaviour in Spain: partial versus full retirement," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 1(3), pages 325-356, July.
    11. Michele Boldrin & Pilar García-Gómez & Sergi Jiménez-Martín, 2010. "Social Security Incentives, Exit from the Workforce and Entry of the Young," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 261-294, National Bureau of Economic Research, Inc.
    12. Bernardo Lanza Queiroz, 2007. "The determinants of male retirement in urban Brazil," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 17(1), pages 11-36, January-A.
    13. Staubli, Stefan & Zweimüller, Josef, 2011. "Does Raising the Retirement Age Increase Employment of Older Workers?," IZA Discussion Papers 5863, Institute of Labor Economics (IZA).
    14. Gruber, Jonathan & Kanninen, Ohto & Ravaska, Terhi, 2022. "Relabeling, retirement and regret," Journal of Public Economics, Elsevier, vol. 211(C).
    15. Axel H. Börsch-Supan & Courtney Coile, 2023. "The Effects of Reforms on Retirement Behavior: Introduction and Summary," NBER Working Papers 31979, National Bureau of Economic Research, Inc.
    16. Mona Larsen & Peder J. Pedersen, 2017. "Labour force activity after 65: what explain recent trends in Denmark, Germany and Sweden? [Arbeitsmarktbeteiligung von über 65-Jährigen: Ursachen für die jüngsten Entwicklungstrends in Dänemark, D," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 15-27, August.
    17. Cristiano Antonelli, 2017. "The Engines of the Creative Response: Reactivity and Knowledge Governance," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 47(2), pages 9-30, Julio-Dic.
    18. Bottazzi, Renata & Jappelli, Tullio & Padula, Mario, 2006. "Retirement expectations, pension reforms, and their impact on private wealth accumulation," Journal of Public Economics, Elsevier, vol. 90(12), pages 2187-2212, December.
    19. Axel Börsch-Supan & Tabea Bucher-Koenen & Felizia Hanemann, 2018. "Early Determinants of Work Disability in an International Perspective," NBER Working Papers 25142, National Bureau of Economic Research, Inc.
    20. Niels Vermeer & Maarten Rooij & Daniel Vuuren, 2019. "Retirement Age Preferences: The Role of Social Interactions and Anchoring at the Statutory Retirement Age," De Economist, Springer, vol. 167(4), pages 307-345, December.

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:14892. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.