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The Politics of Aging and Retirement: Evidence from Swiss Referenda

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  • Piera Bello
  • Vincenzo Galasso

Abstract

Aging creates financial troubles for PAYG pension systems, since the share of retirees to workers increases. An often advocated policy response is to increase retirement age. Ironically, however, the political support for this policy may actually be hindered by population aging. Using Swiss administrative voting data at municipal level (and individual survey data) from pension reforms referenda, we show in fact that individuals close to retirement tend to oppose policies that postpone retirement, whereas young and elderly individuals are more favorable. The current process of population aging, and the associated increase in the size of the cohort of individuals close to retirement, may partially explain why a pension reform, which increased retirement age for females, was approved in two referenda in 1995 and 1998, while a reform, which proposed a similar increase in female retirement age, was defeated in a 2017 referendum.

Suggested Citation

  • Piera Bello & Vincenzo Galasso, 2018. "The Politics of Aging and Retirement: Evidence from Swiss Referenda," CESifo Working Paper Series 7165, CESifo.
    • Handle: RePEc:ces:ceswps:_7165
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    References listed on IDEAS

    as
    1. Tito Boeri & Guido Tabellini, 2012. "Does information increase political support for pension reform?," Public Choice, Springer, vol. 150(1), pages 327-362, January.
    2. Monika Bütler, 2002. "The Political Feasibility of Increasing the Retirement Age: Lessons from a Ballot on the Female Retirement Age," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 9(4), pages 349-365, August.
    3. Monika Buetler & Michel André Maréchal, 2007. "Framing Effects in Political Decision Making: Evidence from a Natural Voting Experiment," CESifo Working Paper Series 1940, CESifo.
    4. Marco Buti & Alessandro Turrini & Paul Noord & Pietro Biroli, 2009. "Defying the ‘Juncker curse’: can reformist governments be re-elected?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(1), pages 65-100, February.
    5. Tito Boeri & Axel Boersch-Supan & Guido Tabellini, 2002. "Pension Reforms and the Opinions of European Citizens," American Economic Review, American Economic Association, vol. 92(2), pages 396-401, May.
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    Cited by:

    1. Ahlfeldt, Gabriel M. & Maennig, Wolfgang & Mueller, Steffen Q., 2022. "The generation gap in direct democracy: Age vs. cohort effects," European Journal of Political Economy, Elsevier, vol. 72(C).
    2. Sonja Feer & Oliver Lipps & Julia Dratva & Isabel Baumann, 2022. "Health and labor force participation among older workers in Switzerland: a growth curve analysis," European Journal of Ageing, Springer, vol. 19(4), pages 1395-1406, December.
    3. Cetin, Sefane & Hindriks, Jean, 2023. "Sustainability of pension reforms: An EU-wide political stress," LIDAM Discussion Papers CORE 2023016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Ben Brewer & Karen Smith Conway & Jonathan C. Rork, 2022. "Do income tax breaks for the elderly affect economic growth?," Contemporary Economic Policy, Western Economic Association International, vol. 40(1), pages 7-27, January.

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    More about this item

    Keywords

    social security reforms; voting behavior; retirement age;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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