Full Citation

Title: The Effect of Social Security, Demography and Technology on Retirement Behavior

Citation Type: Working Paper

Publication Year: 2008

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: This article investigates the causes in the reduction of labor force participation of the old. We argue that the changes in social security policy, in technology and indemography may account for most of the changes in retirement over the second part of the last century in the U.S. economy. We develop a dynamic general equilibrium model with endogenous retirement that embeds social security legislation. The model is able to match very closely the increase in the retirement rate of American males.The model suggests that technological and demographic changes had a strong influence on retirement, so that it would have increased significantly even if the social security rules had not been modified. However, as the latter became much more generous, changes in social security policy account for a sizeable part of the expansion of the aggregate retirement rate (45% of the observed increase). They also explain, together with technology change, most of the variation of the retirement profile by age.

User Submitted?: No

Authors: Ferreira, Pedro C.; dos Santos, Marcelo R.

Series Title:

Publication Number:

Institution: EPGE - Fundao Getulio Vargas

Pages:

Publisher Location:

Data Collections: IPUMS USA

Topics: Aging and Retirement, Labor Force and Occupational Structure

Countries: