IDEAS home Printed from https://ideas.repec.org/p/ise/isegwp/wp152006.html
   My bibliography  Save this paper

Retirement and the Poverty of the Elderly in Portugal

Author

Listed:
  • Paula Albuquerque
  • Manuela Arcanjo
  • Vítor Escária
  • Francisco Nunes
  • José Pereirinha

Abstract

The effect of retirement on economic welfare, indirectly measured by income, has not been studied widely, namely due to the lack of longitudinal data. A large literature exists about poverty in old age, mainly based on cross sectional survey data, but usually those studies are not able to study the transitional effect of retirement on income as they do not observe the workers who do retire before and after their retirement. The knowledge of this phenomenon is, however, of crucial relevance given the growing number of elderly people, the trend towards earlier retirement, and continuing relatively high poverty rates among the elderly. This paper analyses the association between transitions into retirement and the probability of becoming poor, considering different definitions of low income and of retirement, following what has been proposed in the literature. It is based on longitudinal data from the European Community Household Panel (ECHP) for Portugal survey waves 1-8 covering 1994-2001. Taking advantage of the longitudinal nature of the data used, we consider how the process of becoming retired is associated with an increased risk of having a low income, focusing on changes in the years immediately before and immediately after retirement for people who retire. The analysis is then focused on a sample of people who do retire during the analysed period. The paper starts by presenting evidence comparing low income incidence among retired people and the rest of the population on each of the waves of ECHP. Afterwards it analyses some factors associated with the changes in individuals’ income over a number of years around retirement. The dynamics of household income changes for people who retire are studied and which personal and household characteristics are associated with a higher risk of having low income in the years around retirement are explored. Finally, a multivariate probit model of the probability of entering low income at the time of retirement conditional on not having a low income before retirement is estimated.

Suggested Citation

  • Paula Albuquerque & Manuela Arcanjo & Vítor Escária & Francisco Nunes & José Pereirinha, 2006. "Retirement and the Poverty of the Elderly in Portugal," Working Papers Department of Economics 2006/15, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
  • Handle: RePEc:ise:isegwp:wp152006
    as

    Download full text from publisher

    File URL: https://depeco.iseg.ulisboa.pt/wp/wp152006.pdf
    Download Restriction: no

    Citations

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


    Cited by:

    1. repec:dau:papers:123456789/11143 is not listed on IDEAS

    More about this item

    Keywords

    Retirement; poverty dynamics; Portugal; old-age social protection; income mobility.;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ise:isegwp:wp152006. 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: (Vitor Escaria). General contact details of provider: https://aquila.iseg.ulisboa.pt/aquila/departamentos/EC .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.