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Pensions and Retirement Incentives. A Tale of Three Countries: Italy, Spain and the USA

Author

Listed:
  • Agar Brugiavini

    (University of Venice - Department of Economics)

  • Franco Peracchi

    (University of Rome II - Centre for International Studies on Economic Growth (CEIS))

  • David A. Wise

    (National Bureau of Economic Research (NBER))

Abstract

This paper looks at the relationship between the institutional design of the social security system and retirement from the labour force in three countries: Italy, Spain and the USA. Our works stresses the importance of dynamic incentives embedded in social security systems throughout the world and makes use of these three countries as an example. In fact they provide enough variability in their welfare programs that can be exploited to explain differences in retirement behavior. We show that social security rules are very important for individual's decisions to retire at a given age and that policy changes aimed at achieving age-neutrality of social security systems have a crucial role in shaping welfare.

Suggested Citation

  • Agar Brugiavini & Franco Peracchi & David A. Wise, 2003. "Pensions and Retirement Incentives. A Tale of Three Countries: Italy, Spain and the USA," CEIS Research Paper 6, Tor Vergata University, CEIS.
    • Handle: RePEc:rtv:ceisrp:6
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    References listed on IDEAS

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    1. Sergi Jiménez-Martín & Franco Peracchi, 2002. "Sample attrition and labor force dynamics: Evidence from the Spanish labor force survey," Spanish Economic Review, Springer;Spanish Economic Association, vol. 4(2), pages 79-102.
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    6. Diamond, Peter A., 2002. "Social Security Reform," OUP Catalogue, Oxford University Press, number 9780199247899.
    7. 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.
    8. Blau, David M, 1994. "Labor Force Dynamics of Older Men," Econometrica, Econometric Society, vol. 62(1), pages 117-156, January.
    9. Daniele Franco, 2002. "Italy: A Never-Ending Pension Reform," NBER Chapters, in: Social Security Pension Reform in Europe, pages 211-262, National Bureau of Economic Research, Inc.
    10. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
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    12. Agar Brugiavini, 1999. "Social Security and Retirement in Italy," NBER Chapters, in: Social Security and Retirement around the World, pages 181-237, National Bureau of Economic Research, Inc.
    13. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc.
    14. Boldrin Michele & Jiménez-Martín Sergi & Peracchi Franco, 2001. "Sistema de pensiones y mercado de trabajo en España," Books, Fundacion BBVA / BBVA Foundation, edition 1, number 201120, October.
    15. Martin Feldstein & Horst Siebert, 2002. "Social Security Pension Reform in Europe," NBER Books, National Bureau of Economic Research, Inc, number feld02-2.
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    17. Jonathan Gruber & David A. Wise, 2007. "Introduction to "Social Security Programs and Retirement around the World: Fiscal Implications of Reform"," NBER Chapters, in: Social Security Programs and Retirement around the World: Fiscal Implications of Reform, pages 1-42, National Bureau of Economic Research, Inc.
    18. Stock, James H & Wise, David A, 1990. "Pensions, the Option Value of Work, and Retirement," Econometrica, Econometric Society, vol. 58(5), pages 1151-1180, September.
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    Cited by:

    1. Brugiavini, Agar, 2009. "Welfare reforms and labour supply in Italy," Working Paper Series 2009:29, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Agar Brugiavini & Franco Peracchi, 2007. "Fiscal Implications of Pension Reforms in Italy," NBER Chapters, in: Social Security Programs and Retirement around the World: Fiscal Implications of Reform, pages 253-294, National Bureau of Economic Research, Inc.
    3. Fabio Pammolli & Pietro Rizza & Nicola Carmine Salerno, 2004. "Regole pensionistiche e incentivi al prolungamento della vita lavorativa: analisi del caso italiano," Working Papers CERM 06-2004, Competitività, Regole, Mercati (CERM).
    4. Helmut Hofer & Reinhard Koman, 2006. "Social security and retirement incentives in Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 33(5), pages 285-313, December.
    5. Fabio Pammolli & Nicola Carmine Salerno, 2004. "Regole pensionistiche e prolungamento dell'attività: analisi del TIR e effetti del cumulo lavoro-pensione," Working Papers CERM 07-2004, Competitività, Regole, Mercati (CERM).
    6. Agar Brugiavini & Franco Peracchi, 2014. "Health Status, Disability Insurance, and Incentives to Exit the Labor Force in Italy: Evidence from SHARE," NBER Chapters, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, pages 411-454, National Bureau of Economic Research, Inc.
    7. Clara Isabel González & J. Ignacio Conde-Ruiz & Michele Boldrin, 2008. "Immigration and Social Security in Spain," Working Papers 2008-36, FEDEA.

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    More about this item

    Keywords

    pensions; retirement incentives; labor supply;
    All these keywords.

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • 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

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