IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_10999.html
   My bibliography  Save this paper

The Social Multiplier of Pension Reform

Author

Listed:
  • Emre Oral
  • Simon Rabaté
  • Arthur Seibold

Abstract

We study the influence of family members, neighbors and coworkers on retirement behavior. To estimate causal retirement spillovers between individuals, we exploit a pension reform in the Netherlands that creates exogenous variation in peers’ retirement ages, and we use administrative data on the full Dutch population. We find large spillovers in couples, primarily due to women reacting to their husband’s retirement choices. Consistent with homophily in social interactions, the influence of the average sibling, neighbor and coworker is modest, but sizable spillovers emerge between similar individuals in these groups. Additional evidence suggests both leisure complementarities and the transmission of social norms as mechanisms behind retirement spillovers. Our findings imply that pension reforms have a large social multiplier, amplifying their overall impact on retirement behavior by 40%.

Suggested Citation

  • Emre Oral & Simon Rabaté & Arthur Seibold, 2024. "The Social Multiplier of Pension Reform," CESifo Working Paper Series 10999, CESifo.
    • Handle: RePEc:ces:ceswps:_10999
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp10999.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rafael Lalive & Arvind Magesan & Stefan Staubli, 2023. "How Social Security Reform Affects Retirement and Pension Claiming," American Economic Journal: Economic Policy, American Economic Association, vol. 15(3), pages 115-150, August.
    2. Håkan Selin, 2017. "What happens to the husband’s retirement decision when the wife’s retirement incentives change?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 432-458, June.
    3. Dolls, Mathias & Krolage, Carla, 2023. "‘Earned, not given’? The effect of lowering the full retirement age on retirement decisions," Journal of Public Economics, Elsevier, vol. 223(C).
    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. Johannes Hagen, 2018. "The effects of increasing the normal retirement age on health care utilization and mortality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 193-234, January.
    2. Moghadam, Hamed Markazi & Puhani, Patrick A. & Tyrowicz, Joanna, 2024. "Pension reforms and couples’ labour supply decisions," Labour Economics, Elsevier, vol. 91(C).
    3. Marian Fink & Christine Mayrhuber & Silvia Rocha-Akis, 2023. "Abgabenbelastung bei Kombination von Pensions- und Erwerbseinkommen," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(8), pages 539-551, August.
    4. Lisa Laun & Mårten Palme, 2018. "The Recent Rise of Labor Force Participation of Older Workers in Sweden," NBER Chapters, in: Social Security Programs and Retirement around the World: Working Longer, pages 231-265, National Bureau of Economic Research, Inc.
    5. Andrew E Clark & Rong Zhu, 2024. "Taking Back Control? Quasi-Experimental Evidence on the Impact of Retirement on Locus of Control," The Economic Journal, Royal Economic Society, vol. 134(660), pages 1465-1493.
    6. Geyer, Johannes & Haan, Peter & Hammerschmid, Anna & Peters, Michael, 2020. "Labor Market and Distributional Effects of an Increase in the Retirement Age," Labour Economics, Elsevier, vol. 65(C).
    7. Lisa Laun & Mårten Palme, 2023. "Pension Reform, Incentives to Retire, and Retirement Behavior: Empirical Evidence from Swedish Microdata," NBER Chapters, in: Social Security Programs and Retirement around the World: The Effects of Reforms on Retirement Behavior, pages 325-361, National Bureau of Economic Research, Inc.
    8. Atalay, Kadir & Barrett, Garry F., 2016. "Pension Incentives and the Retirement Decisions of Couples," IZA Discussion Papers 10013, Institute of Labor Economics (IZA).
    9. Julian Vedeler Johnsen & Kjell Vaage & Alexander Willén, 2022. "Interactions in Public Policies: Spousal Responses and Program Spillovers of Welfare Reforms," The Economic Journal, Royal Economic Society, vol. 132(642), pages 834-864.
    10. Todd Morris & Benoit Dostie, 2023. "Graying and staying on the job: The welfare implications of employment protection for older workers," Cahiers de recherche / Working Papers 15, Institut sur la retraite et l'épargne / Retirement and Savings Institute.
    11. Herman Kruse, 2021. "Joint Retirement in Couples: Evidence of Complementarity in Leisure," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(3), pages 995-1024, July.
    12. García-Miralles, Esteban & Leganza, Jonathan M., 2024. "Joint retirement of couples: Evidence from discontinuities in Denmark," Journal of Public Economics, Elsevier, vol. 230(C).
    13. Håkan Selin, 2017. "What happens to the husband’s retirement decision when the wife’s retirement incentives change?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 432-458, June.
    14. Wifo, 2023. "WIFO-Monatsberichte, Heft 8/2023," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(8), August.
    15. Becker, Sebastian & Gehlen, Annica & Geyer, Johannes & Haan, Peter, 2024. "Income Effects of Disability Benefits," IZA Discussion Papers 17298, Institute of Labor Economics (IZA).
    16. Kadir Atalay & Garry F. Barrett & Peter Siminski, 2019. "Pension incentives and the joint retirement of couples: evidence from two natural experiments," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 735-767, July.
    17. Boockmann, Bernhard & Reiner, Marcel & Schafstädt, Christin & Scheu, Tobias & Setzepfand, Paul, 2024. "Arbeitskräftepotenziale in Deutschland besser ausschöpfen: 60 Handlungsempfehlungen für Verwaltung, Politik und Praxis," Studien, Stiftung Familienunternehmen / Foundation for Family Businesses, number 305211, March.
    18. Hagen, Johannes, 2016. "What are the Health effects of postponing retirement? An instrumental variable approach," Working Paper Series 2016:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    19. Guiling Zhao & Deyu Zhou & Yunpeng Fu, 2024. "Study on the Impact of Delayed Retirement on the Sustainability of the Basic Pension Insurance Fund for Urban Employees in China," Sustainability, MDPI, vol. 16(10), pages 1-20, May.
    20. Todd Morris, 2022. "The unequal burden of retirement reform: Evidence from Australia," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 592-619, April.

    More about this item

    Keywords

    retirement; pension reform; social networks; spillover; peer effects;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ces:ceswps:_10999. 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: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.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.