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Long-Term Labor Force Exit and Economic Well-Being: A Cross-National Comparison of Public and Private Income Support

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Author Info
Richard V. Burkhauser
Dean R. Lillard
Paola M. Valenti

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Abstract

This paper examines how the economic well-being of households
changes after a male household member exits the labor force. We
examine, in four countries, labor force exits at various ages and
present evidence on household income from various sources before
and after the exit occurs. We focus on the rate at which household
income is replaced through public and private means af-ter labor force
exit. We find that economic well-being is underestimated when
researchers follow the traditional focus in this literature and consider
replacement of earnings through public pension programs. When one
measures total household income, after taxes and transfers, before
and after labor force exits, not only is economic well-being greater
but cross-country differences are reduced.

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Publisher Info
Article provided by DIW Berlin, German Institute for Economic Research in its journal Vierteljahrshefte zur Wirtschaftsforschung.

Volume (Year): 70 (2001)
Issue (Month): 1 ()
Pages: 146-152
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Handle: RePEc:diw:diwvjh:70-10-21

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References listed on IDEAS
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  1. Lumsdaine, Robin L. & Mitchell, Olivia S., 1999. "New developments in the economic analysis of retirement," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 49, pages 3261-3307 Elsevier. [Downloadable!] (restricted)
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  2. Peter Diamond & Jonathan Gruber, 1999. "Social Security and Retirement in the United States," NBER Chapters, in: Social Security and Retirement around the World, pages 437-473 National Bureau of Economic Research, Inc. [Downloadable!]
  3. Jonathan Gruber, 1999. "Social Security and Retirement in Canada," NBER Chapters, in: Social Security and Retirement around the World, pages 73-99 National Bureau of Economic Research, Inc. [Downloadable!]
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  4. Peter Diamond, 2004. "Social Security," American Economic Review, American Economic Association, vol. 94(1), pages 1-24, March. [Downloadable!]
  5. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, Blackwell Publishing, vol. 34(2), pages 115-42, June.
  7. Burkhauser, Richard V & Smeeding, Timothy M & Merz, Joachim, 1996. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," Review of Income and Wealth, Blackwell Publishing, vol. 42(4), pages 381-400, December.
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  8. Axel Borsch-Supan & Reinhold Schnabel, 1999. "Social Security and Retirement in Germany," NBER Chapters, in: Social Security and Retirement around the World, pages 135-180 National Bureau of Economic Research, Inc. [Downloadable!]
    Other versions:
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