Social Security and Retirement across OECD Countries

There are large differences in the employment to population ratio relative to the US across OECD countries, and these differences are even larger for the old age (55-69 years). There are also large differences in various features of social security, such as the replacement rate, the entitlement age or whether it is allowed to collect social security and working. These observations suggest that they might be an important factor. I assess quantitatively this hypothesis using a life cycle general equilibrium model of retirement. I find that the differences in social security can indeed account for the differences in employment to population ratio at old age in the OECD. I also evaluate which features of social security are most important in this context and find that generosity and whether it allows collecting social security while working are the most important contributors

Social security and retirement across OECD countries

There are large differences in the employment to population ratio relative to the US across OECD countries, and these differences are even larger for the old age (55-69 years). There are also large differences in various features of social security, such as the replacement rate, the entitlement age or whether it is allowed to collect social security while working. These observations suggest that they might be an important contributing factor in accounting for differences in retirement. I assess quantitatively the importance of these features using a life cycle general equilibrium model of retirement. I find that the differences in social security account for 90% of the differences in employment to population ratio at ages 60-64 in the OECD. The differences in the replacement rates and whether the system allows for collecting social security while working are the most important contributing factors to account for the differences in retirement.Social security, retirement, idiosyncratic labor income risk

Social Security and Retirement across OECD Countries

There are large differences in the employment to population ratio relative to the US across OECD countries, and these differences are even larger for the old age (55-69 years). There are also large differences in various features of social security, such as the replacement rate, the entitlement age or whether it is allowed to collect social security and working. These observations suggest that they might be an important factor. I assess quantitatively this hypothesis using a life cycle general equilibrium model of retirement. I find that the differences in social security can indeed account for the differences in employment to population ratio at old age in the OECD. I also evaluate which features of social security are most important in this context and find that generosity and whether it allows collecting social security while working are the most important contributors.Social security, retirement, idiosyncratic labor income risk

Social security and retirement across the OECD

Employment to population ratios differ markedly across OECD coun- tries, especially for people over 55. Social security features also differ markedly across the OECD, particularly with respect to replacement rates, entitlement ages and earnings tests. I conjecture that differences in social security features explain many differences in employment to population ratios at older ages. I assess my conjecture quantitatively with a life cycle general equilibrium model of retirement. At ages 60-64 the correlation between my model’s simulations and observed data is .67. Replacement rates and the earnings tests are key features.Social security, retirement, idiosyncratic labor income risk

Social security and retirement across the OECD

Employment to population ratios differ markedly across OECD coun- tries, especially for people over 55. Social security features also differ markedly across the OECD, particularly with respect to replacement rates, entitlement ages and earnings tests. I conjecture that differences in social security features explain many differences in employment to population ratios at older ages. I assess my conjecture quantitatively with a life cycle general equilibrium model of retirement. At ages 60-64 the correlation between my model’s simulations and observed data is .67. Replacement rates and the earnings tests are key features

Social security and retirement across OECD countries

There are large differences in the employment to population ratio relative to the US across OECD countries, and these differences are even larger for the old age (55-69 years). There are also large differences in various features of social security, such as the replacement rate, the entitlement age or whether it is allowed to collect social security while working. These observations suggest that they might be an important contributing factor in accounting for differences in retirement. I assess quantitatively the importance of these features using a life cycle general equilibrium model of retirement. I find that the differences in social security account for 90% of the differences in employment to population ratio at ages 60-64 in the OECD. The differences in the replacement rates and whether the system allows for collecting social security while working are the most important contributing factors to account for the differences in retirement

Social Security and Retirement across the OECD

Employment to population ratios differ markedly across Organization for Economic Cooperation and Development (OECD) countries, especially for people aged over 55 years. In addition, social security features differ markedly across the OECD, particularly with respect to features such as generosity, entitlement ages, and implicit taxes on social security benefits. This study postulates that differences in social security features explain many differences in employment to population ratios at older ages. This conjecture is assessed quantitatively with a life cycle general equilibrium model of retirement. At ages 60–64 years, the correlation between the simulations of this study׳s model and observed data is 0.67. Generosity and implicit taxes are key features to explain the cross-country variation, whereas entitlement age is not

Social Security and Retirement across OECD Countries

There are large differences in the employment to population ratio relative to the US across OECD countries, and these differences are even larger for the old age (55-69 years). There are also large differences in various features of social security, such as the replacement rate, the entitlement age or whether it is allowed to collect social security and working. These observations suggest that they might be an important factor. I assess quantitatively this hypothesis using a life cycle general equilibrium model of retirement. I find that the differences in social security can indeed account for the differences in employment to population ratio at old age in the OECD. I also evaluate which features of social security are most important in this context and find that generosity and whether it allows collecting social security while working are the most important contributors

Social Security and Retirement across the OECD

Employment to population ratios differ markedly across Organization for Economic Cooperation and Development (OECD) countries, especially for people aged over 55 years. In addition, social security features differ markedly across the OECD, particularly with respect to features such as generosity, entitlement ages, and implicit taxes on social security benefits. This study postulates that differences in social security features explain many differences in employment to population ratios at older ages. This conjecture is assessed quantitatively with a life cycle general equilibrium model of retirement. At ages 60–64 years, the correlation between the simulations of this study׳s model and observed data is 0.67. Generosity and implicit taxes are key features to explain the cross-country variation, whereas entitlement age is not