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Social Insurance and Retirement: A Cross-Country Perspective
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
Stockholm School of Economics.
2013 (English)Report (Other academic)
Abstract [en]

In this paper we study the role of social insurance, namely old-age pensions, disability insurance and healthcare, in accounting for the differing labor supply patterns of older individuals across OECD countries. To this end, we develop a life cycle model of labor supply and health with heterogeneous agents. The key features of the framework are: (1) people choose when to stop working, and when/if to apply for disability and pension benefits, (2) the awarding of disability insurance benefits is imperfectly correlated with health, and (3) people can partially insure against health shocks by investing in health, the cost of which is dependent on health insurance coverage. We find that the incentives faced by older workers differ hugely across countries. In fact, based solely on differences in social insurance programs, the model predicts even more cross-country variation in the employment rates of people aged 55-64 than we observe in the data.

Place, publisher, year, edition, pages
Uppsala: Department of Economics, Uppsala University , 2013. , 37 p.
Series
Working paper / Uppsala Center for Fiscal Studies, Uppsala University, 2013:6
Keyword [en]
Life cycle; Retirement; Disability insurance; Health
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-199497OAI: oai:DiVA.org:uu-199497DiVA: diva2:619694
Available from: 2013-05-06 Created: 2013-05-06 Last updated: 2014-01-09Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
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  • asciidoc
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