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Does early retirement increase poverty among Belgian elderly?

Listed author(s):
  • Maes, Marjan


    (Hogeschool-Universiteit Brussel (HUB), Belgium
    Katholieke Universiteit Leuven, Belgium)

A new administrative dataset on incomes (1991-2002) merged with the National Register and the Socio-economic survey of 2001 was used to study the poverty dynamics of Belgian elderly that are in the transition from work to retirement. It is shown that although static poverty rates turn around 12% in a given year, 33% of Belgian elderly is once confronted with poverty over a period of 12 years. The estimation of a discrete-time hazard model showed that poverty transitions are strongly related to the entry in different retirement pathways and social security systems and to changes in household composition. It was found that 1)the social security system of the self-employed, that is financially unsustainable, is not effective neither in combating poverty nor in insuring social risks, 2) entering the system of elderly unemployed and early retirement schemes before the age of 57 is associated with a strong risk of poverty entry.

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Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2008/11.

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Length: 33 pages
Date of creation: Feb 2008
Handle: RePEc:hub:wpecon:200811
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