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Retirement decisions in a discrete choice model and implications for the government budget The case of Belgium

Abstract

The purpose of this paper is to examine the determinants of the retirement decision of the elderly in Belgium. The model used is an extension of the participation model. It offers three choices: full-time work, part-time work and retirement. A CES-utility function is maximised over this opportunity set. Estimation was done on two separate samples for men and women. Using the estimation results, the financial consequences of some policy changes in the social security system are calculated.

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The author is indebted to A. Decoster, E. Schokkaert, P. Van Rompuy and two anonymous referees for carefully reading and commenting this paper. The remaining errors are of course entirely the author's responsibility.

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Pepermans, G. Retirement decisions in a discrete choice model and implications for the government budget The case of Belgium. J Popul Econ 5, 229–243 (1992). https://doi.org/10.1007/BF00172095

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  • DOI: https://doi.org/10.1007/BF00172095

Keywords

  • Social Security
  • Estimation Result
  • Policy Change
  • Choice Model
  • Security System