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Using International Micro Data to Learn about Individuals' Responses to Changes in Social Insurance

Author

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  • Michael D. Hurd
  • Pierre-Carl Michaud
  • Susann Rohwedder

Abstract

In this paper the authors examine the scope of cross-country variation in institutions related to social insurance. Building on the variation they find they assess the value of new micro data that is comparable across countries to help identify key parameters of individual behavior. They present multiple aspects of labor force participation, including disability benefit receipt, as well as wealth accumulation and relate the resulting patterns to variation in institutions across countries. Finally, they study the relationship between wealth accumulation and the generosity of public pensions in more detail. The estimates imply that Social Security benefits displace private saving.

Suggested Citation

  • Michael D. Hurd & Pierre-Carl Michaud & Susann Rohwedder, 2008. "Using International Micro Data to Learn about Individuals' Responses to Changes in Social Insurance," Working Papers WR-626, RAND Corporation.
    • Handle: RePEc:ran:wpaper:wr-626
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    File URL: https://www.rand.org/content/dam/rand/pubs/working_papers/2008/RAND_WR626.pdf
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    References listed on IDEAS

    as
    1. Florian Heiss & Michael D. Hurd & Axel H. Boersch-Supan, 2005. "Healthy, Wealthy, and Knowing Where to Live:," NBER Chapters, in: Analyses in the Economics of Aging, pages 241-280, National Bureau of Economic Research, Inc.
    2. Gale, William G & Scholz, John Karl, 1994. "IRAs and Household Saving," American Economic Review, American Economic Association, vol. 84(5), pages 1233-1260, December.
    3. Jonathan Gruber & David A. Wise, 2004. "Social Security Programs and Retirement around the World: Micro-Estimation," NBER Books, National Bureau of Economic Research, Inc, number grub04-1, March.
    4. Jonathan Gruber & David A. Wise, 1999. "Introduction to "Social Security and Retirement around the World"," NBER Chapters, in: Social Security and Retirement around the World, pages 1-35, National Bureau of Economic Research, Inc.
    5. Steven F. Venti & David A. Wise, 1990. "Have IRAs Increased U. S. Saving?: Evidence from Consumer Expenditure Surveys," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(3), pages 661-698.
    6. Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1, March.
    7. Chiuri, Maria Concetta & Jappelli, Tullio, 2003. "Financial market imperfections and home ownership: A comparative study," European Economic Review, Elsevier, vol. 47(5), pages 857-875, October.
    8. David A. Wise, 2005. "Analyses in the Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise05-1, March.
    9. Kwang-Yeol Yoo & Alain de Serres, 2004. "Tax Treatment of Private Pension Savings in OECD Countries and the Net Tax Cost Per Unit of Contribution to Tax-Favoured Schemes," OECD Economics Department Working Papers 406, OECD Publishing.
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    Citations

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    Cited by:

    1. Adeline Delavande & Susann Rohwedder, 2008. "Individuals’ Responses to Social Security Reform," Working Papers wp182, University of Michigan, Michigan Retirement Research Center.
    2. Laura Hospido & Gema Zamarro, 2014. "Retirement patterns of couples in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.

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    More about this item

    Keywords

    aging; social insurance; international comparisons;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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