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Effects of old-age insurance on female retirement : evidence from cross-country time-series data

  • Richard Johnson
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    I examine the effect of Old-Age Insurance (OAI) on older women’s labour-force participation in fourteen countries since around 1930. Older women’s participation has risen in the US, but has fallen over time in some European countries. The discontinuity of incentives at the state pension age helps separate OAI’s effects from those of social mores and husbands’ retirements. Clear effects of OAI on female retirement emerge slowly in time series. I find that, were Germany to adopt the US Social Security system, the participation rate of German women aged 60-4 would increase by 7 percentage points.

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    File URL: http://www.kansascityfed.org/PUBLICAT/RESWKPAP/pdf/rwp01-08.pdf
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    Paper provided by Federal Reserve Bank of Kansas City in its series Research Working Paper with number RWP 01-08.

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    Date of creation: 2001
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    Handle: RePEc:fip:fedkrw:rwp01-08
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    1. Joseph F. Quinn, 1999. "Has the Early Retirement Trend Reversed?," Boston College Working Papers in Economics 424, Boston College Department of Economics.
    2. Didier Blanchet & Louis-Paul Pele, 1997. "Social Security and Retirement in France," NBER Working Papers 6214, National Bureau of Economic Research, Inc.
    3. Martin Feldstein & Andrew Samwick, 1992. "Social Security Rules and Marginal Tax Rates," NBER Working Papers 3962, National Bureau of Economic Research, Inc.
    4. Alan B. Krueger & Jorn-Steffen Pischke, 1991. "The Effect of Social Security on Labor Supply: A Cohort Analysis of the Notch Generation," NBER Working Papers 3699, National Bureau of Economic Research, Inc.
    5. Goldin, Claudia, 1989. "Life-Cycle Labor-Force Participation of Married Women: Historical Evidence and Implications," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 20-47, January.
    6. Richard Johnson, 2000. "The effect of old-age insurance on male retirement : evidence from historical cross-country data," Research Working Paper RWP 00-09, Federal Reserve Bank of Kansas City.
    7. Kahn, James A., 1988. "Social security, liquidity, and early retirement," Journal of Public Economics, Elsevier, vol. 35(1), pages 97-117, February.
    8. Sandra E. Black, 1997. "Do better schools matter? Parental valuation of elementary education," Research Paper 9729, Federal Reserve Bank of New York.
    9. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc.
    10. John Bound & Michael Schoenbaum & Timothy Waidmann, 1996. "Race Differences in Labor Force Attachment and Disability Status," NBER Working Papers 5536, National Bureau of Economic Research, Inc.
    11. Samwick, Andrew A., 1998. "New evidence on pensions, social security, and the timing of retirement," Journal of Public Economics, Elsevier, vol. 70(2), pages 207-236, November.
    12. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
    13. Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
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