IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v27y2015i4p497-516.html
   My bibliography  Save this article

Changes in pension take-up and retirement in the context of increasing the pension age: the case of Estonia in the 2000s

Author

Listed:
  • Allan Puur
  • Lauri Leppik
  • Martin Klesment

Abstract

This article looks into the effects of increasing the statutory pension age on pension take-up and on employment before and after pension take-up in Estonia in 2002-11. We use individual-level administrative data from the pension register of the Estonian National Social Insurance Board and a set of analytical indicators to capture the pension take-up and employment exit processes. The results reveal a relatively successful adjustment to the increase in pension age. The age gap between take-up of normal and early retirement (old-age) pension has not widened and the increase in the statutory pension age has moved exit from employment proportionally towards a later age. At the same time, a marked increase in the take-up of incapacity pensions, accelerated during the economic recession, has significantly reduced the overall effect of pension age reform.

Suggested Citation

  • Allan Puur & Lauri Leppik & Martin Klesment, 2015. "Changes in pension take-up and retirement in the context of increasing the pension age: the case of Estonia in the 2000s," Post-Communist Economies, Taylor & Francis Journals, vol. 27(4), pages 497-516, December.
    • Handle: RePEc:taf:pocoec:v:27:y:2015:i:4:p:497-516
    DOI: 10.1080/14631377.2015.1084719
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2015.1084719
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2015.1084719?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romain Duval, 2004. "Retirement Behaviour in OECD Countries: Impact of Old-Age Pension Schemes and other Social Transfer Programmes," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 7-50.
    2. Wojciech Kopczuk & Jae Song, 2008. "Stylized Facts and Incentive Effects Related to Claiming of Retirement Benefits Based on Social Security Administration Data," Working Papers wp200, University of Michigan, Michigan Retirement Research Center.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schmitz, Hendrik & Westphal, Matthias, 2021. "The dynamic and heterogeneous effects of retirement on cognitive decline," Ruhr Economic Papers 918, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Leinonen, Taina & Laaksonen, Mikko & Chandola, Tarani & Martikainen, Pekka, 2016. "Health as a predictor of early retirement before and after introduction of a flexible statutory pension age in Finland," Social Science & Medicine, Elsevier, vol. 158(C), pages 149-157.
    3. Redmond, Paul & McGuinness, Seamus & Kelly, Elish, 2017. "Did increasing the state pension age in Ireland affect the overall retirement rate of 65 year olds?," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
    4. Stefan Domonkos & Andras Simonovits, 2016. "Pensions in transition in EU11 countries between 1990 and 2015," CERS-IE WORKING PAPERS 1615, Institute of Economics, Centre for Economic and Regional Studies.
    5. Schiele, Valentin & Schmitz, Hendrik, 2023. "Understanding cognitive decline in older ages: The role of health shocks," European Economic Review, Elsevier, vol. 151(C).
    6. McQuinn, Kieran & O’Toole, Conor & Economides, Philip, 2017. "Quarterly Economic Commentary, Autumn 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20173, march.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tomasz Jedynak, 2022. "Does the Formulation of the Decision Problem Affect Retirement?—Framing Effect and Planned Retirement Age," IJERPH, MDPI, vol. 19(4), pages 1-30, February.
    2. Hanel, Barbara & Riphahn, Regina T., 2012. "The timing of retirement — New evidence from Swiss female workers," Labour Economics, Elsevier, vol. 19(5), pages 718-728.
    3. Giulia Faggio & Stephen Nickell, 2007. "Patterns of Work Across the OECD," Economic Journal, Royal Economic Society, vol. 117(521), pages 416-440, June.
    4. Anna Batyra & David de la Croix & Olivier Pierrard & Henri Sneessens, 2016. "Structural changes in the labor market and the rise of early retirement in Europe," LIDAM Discussion Papers IRES 2016022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. Alonso-Ortiz, Jorge, 2014. "Social security and retirement across the OECD," Journal of Economic Dynamics and Control, Elsevier, vol. 47(C), pages 300-316.
    6. Maciej Lis & Agnieszka Kamińska & Aart-Jan Riekhoff & Izabela Styczynska, 2013. "The Impact of Institutional and Socio-Ecological Drivers on Activity at Older Ages," CASE Network Reports 0115, CASE-Center for Social and Economic Research.
    7. Abdoulaye Ndiaye, 2017. "Flexible Retirement and Optimal Taxation," Working Paper Series WP-2018-18, Federal Reserve Bank of Chicago.
    8. Barbara Hanel & Regina Riphahn, 2006. "Financial Incentives and the Timing of Retirement: Evidence from Switzerland," Working Papers 009, Bavarian Graduate Program in Economics (BGPE).
    9. de la Croix, David & Pierrard, Olivier & Sneessens, Henri R., 2013. "Aging and pensions in general equilibrium: Labor market imperfections matter," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 104-124.
    10. Vincenzo Galasso, 2014. "The role of political partisanship during economic crises," Public Choice, Springer, vol. 158(1), pages 143-165, January.
    11. Luc Behaghel & David M. Blau, 2012. "Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 41-67, November.
    12. Anne Sonnet & Hilde Olsen & Thomas Manfredi, 2014. "Towards More Inclusive Ageing and Employment Policies: The Lessons from France, The Netherlands, Norway and Switzerland," De Economist, Springer, vol. 162(4), pages 315-339, December.
    13. Stefan Hochguertel, 2010. "Self-Employment around Retirement Age," Tinbergen Institute Discussion Papers 10-067/3, Tinbergen Institute.
    14. de la Croix, David & Pierrard, Olivier & Sneessens, Henri R., 2013. "Aging and pensions in general equilibrium: Labor market imperfections matter," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 104-124.
    15. Romain Duval & Jørgen Elmeskov, 2005. "The Effects of EMU on Structural Reforms in Labour and Product Markets," OECD Economics Department Working Papers 438, OECD Publishing.
    16. Kam-Ki Tang & Benjamin ShiJie Wong, "undated". "The Ageing, Longevity and Crowding Out Effects on Private and Public Savings: Evidence from Dynamic Panel Analysis," MRG Discussion Paper Series 3409, School of Economics, University of Queensland, Australia.
    17. Ronald Hagan & Andrew M. Jones & Nigel Rice, 2008. "Health Shocks and the Hazard Rate of Early Retirement in the ECHP," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(III), pages 323-335, September.
    18. Langot, François & Moreno-Galbis, Eva, 2013. "Does the growth process discriminate against older workers?," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 286-306.
    19. Blake, Hélène & Sangnier, Marc, 2011. "Senior activity rate, retirement incentives, and labor relations," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-32.
    20. Teemu Kautonen & Simon Down & Maria Minniti, 2014. "Ageing and entrepreneurial preferences," Small Business Economics, Springer, vol. 42(3), pages 579-594, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:27:y:2015:i:4:p:497-516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.