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Social security and retirement in Belgium

Author

Listed:
  • PESTIEAU, Pierre
  • STIJNS, Jean-Philippe

Abstract

Belgium like many other industrialized countries is facing serious problems in financing its social security. Whereas the effects of aging are still to come, Belgium currently experiences one of the lowest attachments to the labor force of older persons. This paper presents the key features of the Belgian social security system and focuses on labor force participation and benefit receipt. Most of the attention is given to the interaction between retirement behavior and the various social security schemes. By measuring the implicit tax/subsidy rate on work after 55 through these schemes, we can so explain the actual pattern of early and normal retirement of Belgian older workers.
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Suggested Citation

  • PESTIEAU, Pierre & STIJNS, Jean-Philippe, 1999. "Social security and retirement in Belgium," LIDAM Reprints CORE 1374, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1374
    Note: In : J. Gruber and D.A. Wise (eds.), Social Security and Retirement around the World. Chicago, The University of Chicago Press, 37-71, 1999
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    Cited by:

    1. Alain Jousten & Mathieu Lefèbvre & Sergio Perelman & Pierre Pestieau, 2010. "The Effects of Early Retirement on Youth Unemployment: The Case of Belgium," NBER Chapters, in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 47-76, National Bureau of Economic Research, Inc.
    2. Arnaud Dellis & Raphaël Desmet & Alain Jousten & Sergio Perelman, 2004. "Micro-Modeling of Retirement in Belgium," NBER Chapters, in: Social Security Programs and Retirement around the World: Micro-Estimation, pages 41-98, National Bureau of Economic Research, Inc.
    3. Alain Jousten & Mathieu Lefebvre & Sergio Perelman, 2014. "Health Status, Disability, and Retirement Incentives in Belgium," NBER Chapters, in: Social Security Programs and Retirement Around the World: Disability Insurance Programs and Retirement, pages 179-209, National Bureau of Economic Research, Inc.
    4. Anne-Lore Fraikin & Alain Jousten & Mathieu Lefebvre, 2018. "Social Security Incentives in Belgium: An Analysis of Four Decades of Change," NBER Chapters, in: Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, pages 43-78, National Bureau of Economic Research, Inc.
    5. Casey B. Mulligan & Xavier Sala-i-Martin, 1999. "Gerontocracy, Retirement, and Social Security," NBER Working Papers 7117, National Bureau of Economic Research, Inc.
    6. Karakaya, Güngör, 2008. "Early cessation of activity in the labour market: impact of supply and demand factors," MPRA Paper 13390, University Library of Munich, Germany.
    7. Gilles Le Garrec, 2001. "Systèmes de retraite par répartition, mode de calcul des droits à pension et croissance," Recherches économiques de Louvain, De Boeck Université, vol. 67(4), pages 357-380.
    8. Axel Borsch-Supan, 1998. "Incentive Effects of Social Security on Labor Force Participation: Evidence in Germany and Across Europe," NBER Working Papers 6780, National Bureau of Economic Research, Inc.
    9. Miles, David, 2000. "Funded and Unfunded Pensions: Risk, Return and Welfare," CEPR Discussion Papers 2369, C.E.P.R. Discussion Papers.
    10. Kevin Milligan & Tammy Schirle, 2008. "Improving the Labour Market Incentives of Canada's Public Pensions," Canadian Public Policy, University of Toronto Press, vol. 34(3), pages 281-304, September.
    11. Luís Eduardo Afonso & Adriana Schor, 2001. "oferta de Trabalho dos Indivíduos com Idade Superior a 50 Anos: Algumas Características da Década de 90," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 092, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    12. BURGGRAEVE Koen & DU CAJU Philip, 2010. "How Do Reference Values for Wages and Wage Indexing Influence the Impact of Labour Tax Reductions?," EcoMod2003 330700028, EcoMod.
    13. Casey B. Mulligan & Xavier Sala-i-Martin, 2003. "Social Security, Retirement, and the Single-Mindedness of the Electorate," NBER Working Papers 9691, National Bureau of Economic Research, Inc.
    14. Anne-Lore Fraikin & Alain Jousten & Mathieu Lefebvre, 2023. "Trends in Social Security Incentives in Belgium," NBER Chapters, in: Social Security Programs and Retirement around the World: The Effects of Reforms on Retirement Behavior, pages 33-65, National Bureau of Economic Research, Inc.
    15. Christina Behrendt, 1999. "Private Pensions - A Viable Alternative? Distributive Effects of Private Pensions in a Comparative Perspective," LIS Working papers 220, LIS Cross-National Data Center in Luxembourg.
    16. Borsch-Supan, Axel, 2000. "Incentive effects of social security on labor force participation: evidence in Germany and across Europe," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 25-49, October.
    17. Casey B. Mulligan, 2000. "Induced Retirement, Social Security, and the Pyramid Mirage," NBER Working Papers 7679, National Bureau of Economic Research, Inc.
    18. Desmet, Raphaël & Jousten, Alain & Perelman, Sergio, 2005. "The Benefits of Separating Early Retirees from the Unemployed: Simulation Results for Belgian Wage Earners," IZA Discussion Papers 1571, Institute of Labor Economics (IZA).
    19. Mathieu Lefebvre & Kristian Orsini, 2012. "A structural model for early exit of older men in Belgium," Empirical Economics, Springer, vol. 43(1), pages 379-398, August.

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