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

Darwin Cortés, Darío Maldonado and Giselle Vesga ()

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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