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Microsimulations of the retirement decision: a supply side approach

Author

Listed:
  • R. MAHIEU

    (Insee)

  • B. SÉDILLOT

    (Insee)

Abstract

The economic debate on pensions in France has been increasingly focusing on introducing more flexibility in the retirement decision (up to now sharply constrained by the strength of incentives to claim SS benefits at the so-called « full rate » in the private sector): see Charpin (1999) and Taddei (2000). This paper analyzes methodological issues in implementing a supply-side modelling of the retirement decision in the microsimulation model Destinie. We simulate the retirement decision for cohorts 1943 to 1947 under various assumptions regarding the parameterization of the model. To assess the sensitivity of the model to change in the computation of pensions, we also simulate the possible impact on individual behaviours of reforms that would simultaneously decrease the penalties implied by anticipated retirement and increase the level of benefits in case people would decide to keep on working after being entitled to the full rate.

Suggested Citation

  • R. Mahieu & B. Sédillot, 2000. "Microsimulations of the retirement decision: a supply side approach," Documents de Travail de l'Insee - INSEE Working Papers g2000-07, Institut National de la Statistique et des Etudes Economiques.
    • Handle: RePEc:nse:doctra:g2000-07
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    File URL: https://www.bnsp.insee.fr/ark:/12148/bc6p06zqrbj/f1.pdf
    File Function: Document de travail de la DESE numéro G2000-07
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    More about this item

    Keywords

    microsimulation; retirement decision; pension schemes;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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