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De Economist

, Volume 161, Issue 3, pp 253–276 | Cite as

Retirement Incentives in Belgium: Estimations and Simulations Using SHARE Data

  • Alain Jousten
  • Mathieu Lefebvre
Article

Abstract

The paper studies retirement behavior of wage-earners in Belgium—for the first time using a rich survey dataset to analyze retirement incentives as faced by individuals. Specifically, we use SHARE data to estimate a model à la Stock and Wise (Econom Econ Soc 58(5):1151–1180, 1990). Exploring the data on individual life-histories from SHARELIFE, we construct a measure of financial incentive to retire. Our analysis explicitly takes into account the different take-up rates of the various early retirement exit paths across time and ages. The results show that financial incentives play a strong role. Health and education also matter, as do regional differences. Against the general background of the 2020 strategy, we perform a set of policy simulations and illustrate the scope but also the limits associated with selective parametric reforms.

Keywords

Pensions Social security Disability Early retirement  Unemployment Labor force participation 

JEL Classification

H55 J21 J26 J14 

References

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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Université de LiègeLiègeBelgium
  2. 2.NetsparIZA, LiègeBelgium

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