Pension Enhancements and Teacher Retirement Behavior

Wei Kong, Shawn Ni (), Michael Podgursky and Weiwei Wu

No 1814, Working Papers from Department of Economics, University of Missouri

Abstract: We examine how pension rule changes affect teacher retirement by estimating a structural retirement model on a large cohort of late career Missouri public school teachers. In so doing we address several statistical challenges that arise in estimating dynamic retirement models. The resulting estimates produce good in and out-of-sample fit. Counter-factual simulations suggest that Missouri's 1990s pension enhancements led to earlier retirement by about 0.4 years on average for the 1994 cohort and by more than one year in a steady state. Enhancements increased steady state pension liabilities by 16 percent for senior teachers.

Keywords: teachers' pensions; sample selection bias; expectation of policy rules (search for similar items in EconPapers)
JEL-codes: I21 J26 J38 (search for similar items in EconPapers)
Pages: 63 pgs.
Date: 2018-10
New Economics Papers: this item is included in nep-age, nep-lma and nep-ure
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:umc:wpaper:1814

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