Shattered Dreams: The Effects of Changing the Pension System Late in the Game

Andries de Grip, Maarten Lindeboom () and Raymond Montizaan

No 4034, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper assesses the impact of a dramatic reform of the Dutch pension system on mental health, savings behavior and retirement expectations of workers nearing retirement age. The reform means that public sector workers born on January 1, 1950 or later face a substantial reduction in their pension rights while workers born before this threshold date may still retire under the old, more generous rules. We employ a unique matched survey and administrative data set comprising male public sector workers born in 1949 and 1950 and find strong ex ante effects on mental health for workers who are affected by the reform. This effect increases as birth dates approach the threshold date. Furthermore, the effects differ in accordance with worker characteristics. Finally, we find that the response of those affected by the reform is to work longer and to save more.

Keywords: causal effect; pension reform; mental health; retirement (search for similar items in EconPapers)
JEL-codes: I12 J08 J14 J26 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2009-02
New Economics Papers: this item is included in nep-age and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published - published in: Economic Journal, 2012, 122 (559), 1–25

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Related works:
Journal Article: Shattered Dreams: The Effects of Changing the Pension System Late in the Game (2012)
Working Paper: Shattered dreams: the effects of changing the pension system late in the game (2009)
Working Paper: Shattered dreams: the effects of changing the pension system late in the game (2009)
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