Social Security and Retirement in Spain
AbstractWe describe the historical evolution of the Spanish Social Security system and its current organization. Our attention concentrates on the main public pension scheme for private employees in the manufacturing and service sector (RGSS) which covers by far the largest majority of Spanish workers. After describing the way in which pension and retirement decisions are regulated by this system, we try to compute the incentives to early retirement it provides to different kinds of individuals. We show that the Spanish SS legislation generates strong incentives to retire early and that Spanish workers tend to do so. In particular, our findings support the idea that pensions-induced incentives matter for the labor supply behavior of" Spanish workers. While the Spanish system does not pay a particularly generous average pension relative to GDP per-capita, its generosity' concentrates on providing large minimum pensions to individuals with below average working histories and/or low wages. At the same time, the pension system provides workers earning average or above average salaries and with complete working histories with relatively weak financial gains from not retiring after the age of 60. The combination of these features of the Spanish legislation seems to account well for the observed increase in the percentage of early retirees among Spanish pensioners during the nineties.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6136.
Date of creation: Aug 1997
Date of revision:
Publication status: published as Michele Boldrin, Sergi Jimenez-Martin, Franco Peracchi. "Social Security and Retirement in Spain," in Jonathan Gruber and David A. Wise, editors, "Social Security and Retirement around the World" University of Chicago Press (1999)
Note: AG PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Boldrin, Michele & Jiménez-Martín, Sergi & Peracchi, Franco, . "Social security and retirement in Spain," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/6043, Universidad Carlos III de Madrid.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Juan F. Jimeno & Omar Licandro, . "El equilibrio financiero de un sistema de reparto de pensiones de jubilación: Una aplicación al caso español," Working Papers 96-21, FEDEA.
- José A. Herce., . "La reforma de las pensiones en España: Aspectos analíticos y aplicados," Working Papers 96-25, FEDEA.
- Ana Martín Marcos & Lourdes Moreno, 1990. "Efectos de las pensiones de la seguridad social sobre la oferta de trabajo en España," Investigaciones Economicas, Fundación SEPI, vol. 14(2), pages 291-303, May.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.