Social Security and Retirement across the OECD

Jorge Alonso-Ortiz ()

No 1007, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: Employment to population ratios differ markedly across OECD countries relative to rates in the U.S., especially for persons aged 55-69. Social security features also differ 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 about two thirds. The replacement rate and the earnings test explain 90% of observed variability, implying that differences in entitlement ages do not explain differences in employment to population rates at older ages.

Keywords: Social Security; Retirement; Idiosyncratic Labor Income Risk (search for similar items in EconPapers)
JEL-codes: E24 H53 J14 J26 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Social security and retirement across the OECD (2014)
Working Paper: Social Security and Retirement across the OECD (2014)
Working Paper: Social security and retirement across the OECD (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cie:wpaper:1007

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