Endogenous Retirement and Public Pension System Reform in Spain

Alfonso R Sánchez-Martín ()
Additional contact information
Alfonso R Sánchez-Martín: Department of Economics, Universidad Pablo de Olavide
Authors registered in the RePEc Author Service: Alfonso Ramon Sanchez Martin ()

No 08.06, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: All around the world, population aging has spurred developed countries to reform their PAYG pension systems. In particular, delaying legal retirement ages and reducing the generosity of pension benefits have been widely implemented changes. In this paper we assess how successful those policies can be in the case of the Spanish economy, and compare with the results obtained by the already implemented reforms (1997 and 2001). This evaluation is accomplished in a heterogeneous-agents, applied general equilibrium model where individuals can adjust their retirement ages in response to changes in pension rules. We check the ability of the model to reproduce the basic stylized facts of retirement behavior (specially the pattern of early retirement induced by minimum pensions). We then use to model to explore the impact of pension reforms. We find that already implemented changes actually increase the implicit liabilities of the system, while delaying the legal retirement age to 68 may roughly halve the size of the current pension debt.

Keywords: Pension System Reform; Applied General Equilibrium; Retirement. (search for similar items in EconPapers)
JEL-codes: D58 H55 J14 J26 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2008-03
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 (2)

Downloads: (external link)
http://www.upo.es/serv/bib/wps/econ0806.pdf First version, 2008 (application/pdf)

Related works:
Journal Article: Endogenous retirement and public pension system reform in Spain (2010)
Working Paper: Endogenous retirement and public pension system reform in Spain (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:08.06

Access Statistics for this paper

More papers in Working Papers from Universidad Pablo de Olavide, Department of Economics Carretera de Utrera km.1, 41013 Sevilla. Contact information at EDIRC.
Bibliographic data for series maintained by Publicación Digital - UPO ().