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Social security and retirement across the OECD

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  • Alonso-Ortiz, Jorge

Abstract

Employment to population ratios differ markedly across OECD coun- tries, especially for people over 55. Social security features also differ markedly across the OECD, particularly with respect to replacement rates, entitlement ages and earnings tests. I conjecture that differences in social security features explain many differences in employment to population ratios at older ages. I assess my conjecture quantitatively with a life cycle general equilibrium model of retirement. At ages 60-64 the correlation between my model’s simulations and observed data is .67. Replacement rates and the earnings tests are key features.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35619.

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Date of creation: 15 Nov 2010
Date of revision: 13 Dec 2011
Handle: RePEc:pra:mprapa:35619

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Keywords: Social security; retirement; idiosyncratic labor income risk;

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  1. Mark Huggett & Gustavo Ventura & Amir Yaron, 2011. "Sources of Lifetime Inequality," American Economic Review, American Economic Association, vol. 101(7), pages 2923-54, December.
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Cited by:
  1. Selo Imrohoroglu, 2011. "Social Security, Benefit Claiming, and Labor Force Participation: A Quantitative General Equilibrium Approach," 2011 Meeting Papers 215, Society for Economic Dynamics.
  2. Heylen Freddy & Van de Kerckhove Renaat, 2013. "Employment by age, education, and economic growth: effects of fiscal policy composition in general equilibrium," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 55, October.
  3. Alonso-Ortiz, Jorge, 2013. "Taxes, Transfers and the Macroeconomy," MPRA Paper 49569, University Library of Munich, Germany.

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