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The Effect of Social Security Reform on Male Retirement in High and Middle Income Countries

Author

Listed:
  • David E. Bloom

    (Harvard School of Public Health)

  • David Canning

    (Harvard School of Public Health)

  • Gunther Fink

    (Harvard School of Public Health)

  • Jocelyn Finlay

    (Harvard School of Public Health)

Abstract

We analyze panel data for 40 countries over the period 1970-2000 to examine the effect of social security reforms on the labor supply of older men. The data show a trend towards earlier retirement that can be explained by rising income levels. We find that the average retirement age rises significantly when the normal, or early, social security eligibility age rises, the pension benefits for postponing retirement are increased, or the system shifts from defined benefits to defined contributions. A package of social security reforms is capable of substantially increasing the labor supply of older men.

Suggested Citation

  • David E. Bloom & David Canning & Gunther Fink & Jocelyn Finlay, 2009. "The Effect of Social Security Reform on Male Retirement in High and Middle Income Countries," PGDA Working Papers 4809, Program on the Global Demography of Aging.
    • Handle: RePEc:gdm:wpaper:4809
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    References listed on IDEAS

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    Cited by:

    1. Miroslav Verbič & Rok Spruk, 2014. "Aging Population and Public Pensions: Theory and Macroeconometric Evidence," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(3), pages 289-316, June.
    2. Philip U. Sauré & Hosny Zoabi, 2012. "Retirement Age across Countries: The Role of Occupations," Working Papers 2012-06, Swiss National Bank.
    3. Verbič, Miroslav & Spruk, Rok, 2011. "Aging population and public pensions: theory and evidence," MPRA Paper 38914, University Library of Munich, Germany.
    4. Lee, Sang-Hyop & Ogawa, Naohiro & Matsukura, Rikiya, 2016. "Japan’s pension reform, labor market responses, and savings," The Journal of the Economics of Ageing, Elsevier, vol. 8(C), pages 67-75.

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    Keywords

    Social security reform; retirement; high and middle income countries;
    All these keywords.

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