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Male Labor Force Participation and Social Security in Mexico

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  • Emma Aguila

Abstract

In 1960, the labor force participation of males 60 to 64 years old in Mexico was 94.6 percent; by 2010, it had declined to 65.2 percent. Other Latin American countries are seeing similar trends, as did developed countries before the 1990s. These trends are important because workers' early retirement affects the financial sustainability of social security systems. This study finds that the Mexican social security system is not actuarially fair and provides incentives to retire "early" — before age 65. The system's retirement incentives affect retirement behavior and are potentially one of the main factors explaining the decline in male labor force participation.

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  • Emma Aguila, 2012. "Male Labor Force Participation and Social Security in Mexico," Working Papers WR-910, RAND Corporation.
    • Handle: RePEc:ran:wpaper:wr-910
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    References listed on IDEAS

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    Cited by:

    1. Bernardo Queiroz & Laetícia Rodrigues de Souza, 2013. "Couple’s Behaviour in the Brazilian Labour Market: the Influence of Social Security and Individual Characteristics on Married Individuals’ Labour Supply Decisions," Working Papers 107, International Policy Centre for Inclusive Growth.
    2. Hyndman, Rob J. & Lee, Alan J. & Wang, Earo, 2016. "Fast computation of reconciled forecasts for hierarchical and grouped time series," Computational Statistics & Data Analysis, Elsevier, vol. 97(C), pages 16-32.
    3. Queiroz, Bernardo L. & Souza, Laeticia R., 2017. "Retirement incentives and couple’s retirement decisions in Brazil," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 1-13.
    4. Puigvert Jonathan & Juárez-Torres Miriam, 2019. "Labour Force Participation and the Business Cycle in Mexico," Working Papers 2019-04, Banco de México.
    5. Gunes Asik, 2018. "Impact of early retirement incentives on labor supply of young men and women : evidence from Turkey," Working Papers 20180002, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    6. Jun, Hankyung, 2020. "Social security and retirement in fast-aging middle-income countries: Evidence from Korea," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).

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    More about this item

    Keywords

    retirement incentives; labor force participation; social security system;
    All these keywords.

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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