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Health Status, Disability and Retirement Incentives in Belgium

Author

Listed:
  • Jousten, Alain

    () (University of Liège)

  • Lefèbvre, Mathieu

    () (Université de Strasbourg)

  • Perelman, Sergio

    () (CREPP, Université de Liège)

Abstract

Many Belgian retire well before the statutory retirement age. Numerous exit routes from the labor force can be identified: old-age pensions, conventional early retirement, disability insurance, and unemployment insurance are the most prominent ones. We analyze the retirement decision of Belgian workers adopting an option value framework, and pay special attention to the role of health status. We estimate probit models of retirement using data from SHARE. The results show that health and incentives matter in the decision to exit from the labor market. Based on these results, we simulate the effect of potential reforms on retirement.

Suggested Citation

  • Jousten, Alain & Lefèbvre, Mathieu & Perelman, Sergio, 2013. "Health Status, Disability and Retirement Incentives in Belgium," IZA Discussion Papers 7783, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7783
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    References listed on IDEAS

    as
    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, 2012. "Disability in Belgium: There Is More Than Meets the Eye," NBER Chapters,in: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participatio, pages 251-276 National Bureau of Economic Research, Inc.
    4. repec:eee:joecag:v:9:y:2017:i:c:p:172-184 is not listed on IDEAS
    5. Raphael Desmet & Alain Jousten & Sergio Perelman & Pierre Pestieau, 2007. "Microsimulation of Social Security Reforms in Belgium," NBER Chapters,in: Social Security Programs and Retirement around the World: Fiscal Implications of Reform, pages 43-82 National Bureau of Economic Research, Inc.
    6. Poterba, James M. & Venti, Steven F. & Wise, David A., 2017. "The asset cost of poor health," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 172-184.
    7. Stock, James H & Wise, David A, 1990. "Pensions, the Option Value of Work, and Retirement," Econometrica, Econometric Society, vol. 58(5), pages 1151-1180, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Carmen Camacho & Fabio Mariani & Luca Pensieroso, 2017. "Illegal immigration and the shadow economy," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 1050-1080, December.
    2. Alain Jousten & Mathieu Lefebvre, 2016. "Work Capacity and Longer Working Lives in Belgium," NBER Chapters,in: Social Security Programs and Retirement Around the World: The Capacity to Work at Older Ages, pages 35-58 National Bureau of Economic Research, Inc.
    3. Muriel Dejemeppe & Catherine Smith & Bruno der Linden, 2015. "Did the Intergenerational Solidarity Pact increase the employment rate of older workers in Belgium? A macro-econometric evaluation," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-23, December.
    4. Lorenzo Burlon & Montserrat Vilalta-Bufí, 2016. "A new look at technical progress and early retirement," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-39, December.
    5. Alain Jousten & Mathieu Lefebvre, 2018. "Older Men’s Labor Force Participation in Belgium," NBER Chapters,in: Social Security Programs and Retirement around the World: Working Longer National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    unemployment; early retirement; disability; social security; pensions; labor force participation;

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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