Social Insurance and Retirement: A Cross-Country Perspective
In this paper we study the role of social insurance, namely old-age pensions, disability insurance and healthcare, in accounting for the differing labor supply patterns of older individuals across OECD countries. To this end, we develop a life cycle model of labor supply and health with heterogeneous agents. The key features of the framework are: (1) people choose when to stop working, and when/if to apply for disability and pension benefits, (2) the awarding of disability insurance benefits is imperfectly correlated with health, and (3) people can partially insure against health shocks by investing in health, the cost of which is dependent on health insurance coverage. We find that the incentives faced by older workers differ hugely across countries. In fact, based solely on differences in social insurance programs, the model predicts even more cross-country variation in the employment rates of people aged 55-64 than we observe in the data.
|Date of creation:||03 May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrés Erosa & Luisa Fuster & Gueorgui Kambourov, 2011.
"Labor supply and government programs: A cross-country analysis,"
2011-08, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales, revised 19 Oct 2011.
- Erosa, Andrés & Fuster, Luisa & Kambourov, Gueorgui, 2012. "Labor supply and government programs: A cross-country analysis," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 84-107.
- Andres Erosa & Luisa Fuster & Gueorgui Kambourov, 2011. "Labor Supply and Government Programs: A Cross-Country Analysis," Working Papers tecipa-442, University of Toronto, Department of Economics.
- Radha Iyengar & Giovanni Mastrobuoni, 2008.
"The Political Economy of the Disability Insurance. Theory and Evidence of Gubernatorial Learning from Social Security Administration Monitoring,"
Carlo Alberto Notebooks
70, Collegio Carlo Alberto, revised 2010.
- C Radha Iyengar & Giovanni Mastrobuoni, 2007. "The Political Economy of the Disability Insurance. Theory and Evidence of Gubernatorial Learning from Social Security Administration Monitoring," CeRP Working Papers 70, Center for Research on Pensions and Welfare Policies, Turin (Italy).
- Richard Rogerson, 2007.
"Taxation and Market Work: Is Scandinavia an Outlier?,"
NBER Working Papers
12890, National Bureau of Economic Research, Inc.
- Richard Rogerson, 2007. "Taxation and market work: is Scandinavia an outlier?," Economic Theory, Springer, vol. 32(1), pages 59-85, July.
- Lee Ohanian & Andrea Raffo & Richard Rogerson, 2006.
"Long-Term Changes in Labor Supply and Taxes: Evidence from OECD Countries, 1956-2004,"
NBER Working Papers
12786, National Bureau of Economic Research, Inc.
- Ohanian, Lee & Raffo, Andrea & Rogerson, Richard, 2008. "Long-term changes in labor supply and taxes: Evidence from OECD countries, 1956-2004," Journal of Monetary Economics, Elsevier, vol. 55(8), pages 1353-1362, November.
- Lee Ohanian & Andrea Raffo & Richard Rogerson, 2006. "Long-term changes in labor supply and taxes: evidence from OECD countries, 1956-2004," Research Working Paper RWP 06-16, Federal Reserve Bank of Kansas City.
- Johansson Per & Laun Lisa & Laun Tobias, 2014.
"Screening Stringency in the Disability Insurance Program,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 14(3), pages 19, July.
- Johansson, Per & Laun, Lisa & Laun, Tobias, 2013. "Screening stringency in the disability insurance program," Working Paper Series 2013:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Ljungqvist, Lars & Sargent, Thomas J, 2007.
"Do Taxes Explain European Employment? Indivisible Labour, Human Capital, Lotteries and Savings,"
CEPR Discussion Papers
6196, C.E.P.R. Discussion Papers.
- Lars Ljungqvist & Thomas J. Sargent, 2007. "Do Taxes Explain European Employment? Indivisible Labor, Human Capital, Lotteries, and Savings," NBER Chapters, in: NBER Macroeconomics Annual 2006, Volume 21, pages 181-246 National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:hhs:uufswp:2013_006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarina Grönvall)
If references are entirely missing, you can add them using this form.