Parametric Pension Reform and the Intensive Margin of Labor Supply, Evidence from Colombia

Darwin Cort√©s, Darío Maldonado and Giselle Vesga
Authors registered in the RePEc Author Service: Darwin Cortés

No 12476, Documentos de Trabajo from Universidad del Rosario

Abstract: Abstract: We analyze the effect of a parametric reform of the fully-funded pension regime in Colombia on the intensive margin of the labor supply. We take advantage of a threshold defined by law in order to identify the causal effect using a regression discontinuity design. We find that a pension system that increases retirement age and the minimum weeks during which workers must contribute to claim pension benefits causes an increase of around 2 hours on the number of weekly worked hours; this corresponds to 4% of the average number of weekly worked hours or around 14% of a standard deviation of weekly worked hours. The effect is robust to different specifications, polynomial orders and sample sizes.

Keywords: Labor supply; Regression discontinuity; pension system reform; Colombia (search for similar items in EconPapers)
JEL-codes: D91 J26 (search for similar items in EconPapers)
Pages: 16
Date: 2015-01-29
New Economics Papers: this item is included in nep-age and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:col:000092:012476

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