Social security and early retirement / Robert Fenge and Pierre Pestieau.

Format:

Book

Author/Creator:

Fenge, Robert.

Contributor:

Pestieau, Pierre, 1943-

Series:

CESifo book series

Language:

English

Subjects (All):

Social security--OECD countries.

Early retirement--OECD countries.

Social security.

Early retirement.

Old age pensions--Finance.

Old age pensions.

OECD countries.

Physical Description:

xii, 138 pages : illustrations ; 24 cm.

Place of Publication:

Cambridge, Mass. : MIT Press, [2005]

Summary:

Theoretical and empirical analysis of the relationship between retirement decision and pension systems, with policy recommendations for reversing the current trend toward early retirement.

Contents:

2 Facts and Trends of Early Retirement 5

2.1 Labor-Force Status 5

2.2 Pathways to Retirement 7

2.3 Effective Retirement Age 12

2.4 The Gap between Longevity and Retirement 15

2.5 Health 17

3 Implicit Taxation on Postponing Retirement 23

3.1 Single-Year Accruals 23

3.2 Peak-Value Approach 29

3.3 Option-Value Approach 32

3.4 Empirical Evidence for Retirement Incentives 33

4 Optimal Design and Reform 37

4.2 The Basic Model 38

4.3 Pension Systems 40

4.4 A Double Burden 42

4.5 Optimal Tax Rates 44

4.6 Retirement and Social Security Reform 45

4.7 Earnings Tests and Retirement 47

5 The Political Economy of Early Retirement 53

5.2 Political Unpopularity 54

5.3 The Political Selection of a Retirement Age 56

5.4 Determining the Contribution Rate 58

5.5 The Double Dividend of Postponing Retirement 60

5.6 Resistance to Socially Desirable Reforms 62

6 An Overlapping-Generations Model with Retirement and Taxation 67

6.2 The Model 69

6.2.1 Households 69

6.2.2 Production 70

6.2.3 Government 71

6.3 Market Equilibrium and First-Best Optimality 71

6.3.1 Intertemporal Equilibrium 71

6.3.2 Optimal Growth 72

6.3.3 Decentralization 73

6.3.4 Steady-State Conditions 74

6.4 Second-Best Policy 74

6.4.1 Debt Policy 76

6.4.2 No Debt Policy 77

6.4.3 Interpretation 78

7 Disability Insurance 81

7.2 A Simple Model of Disability Insurance 83

7.2.1 Preferences and Types of Individuals 83

7.2.2 Policy 84

7.3 Different Social Weights 85

7.3.1 Full-Information Optimum and Laissez-Faire 86

7.3.2 Unobservable Types: A Second-Best Solution 87

7.3.3 A Second-Best Solution with Auditing 88

7.4 An Alternative Specification 94

7.4.1 A Full-Information Solution and Decentralization 94

7.4.2 Unobservable Types: A Second-Best Solution 95

7.4.3 A Second-Best Solution with Auditing in the Paternalistic Case 97

7.4.4 Illustration: Paternalistic Objective 101

7.5 Interpretation 103

7.6 Unemployment and Retirement 104

8 The Demand Side 107

8.1 The Lazear Model 109

8.2 Empirical Evidence 111

8.3 Early Retirement and Macroeconomic Performance 115

9.1 Policy Recommendations 119

9.2 Salient Issues for Future Research 121

9.2.1 Retirement and Portability 121

9.2.2 Flexible Retirement and Second Careers 122

9.2.3 Heterogeneity in Life Expectancy 122

9.2.4 Nonstandard Models 122.

Notes:

Includes bibliographical references (pages [127]-133) and index.

ISBN:

0262062496

OCLC:

59148339