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The Political Feasibility of Increasing Retirement Age: Lessons from a Ballot on Female Retirement Age

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  • Bütler, Monika

Abstract

In 1998, the Swiss voters approved of an increase in female retirement age from 62 to 64. The referendum, being on a single issue only, offers a unique opportunity to explore the political feasibility of pension reforms and to apply theoretical models of life-cycle decision making. Estimates carried out with municipality data suggest that the outcome of the vote conforms relatively well with predictions drawn from a theoretical simulation study. There are, however, surprising gender differences even in married couples. Young agents, married middle-aged and all elderly men favour an increase in female retirement age, while middle-aged and elderly women strongly oppose it. Richer communities and those with a high proportion of self-employed or a low fraction of blue-collar workers are more likely to opt for a higher retirement age. Ideological preferences and regional differences also play a considerable role.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2780.

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Date of creation: Apr 2001
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Handle: RePEc:cpr:ceprdp:2780

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Related research

Keywords: (Female) Retirement Age; Life-Cycle Decision Making; Social Security Reforms;

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  1. Friedrich Breyer & Ben Craig, 1995. "Voting on social security: evidence from OECD countries," Working Paper 9511, Federal Reserve Bank of Cleveland.
  2. Persson, Torsten & Tabellini , Guido, 1997. "Political Economics and Macroeconomic Policy," Seminar Papers 630, Stockholm University, Institute for International Economic Studies.
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Cited by:
  1. Casper van Ewijk & Erik Canton & Paul Tang, 2004. "Ageing and international capital flows," CPB Document 43, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Barbara Hanel & Regina Riphahn, 2006. "Financial Incentives and the Timing of Retirement: Evidence from Switzerland," Working Papers 009, Bavarian Graduate Program in Economics (BGPE).

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