Pension Plan Heterogeneity and Retirement Behavior∗
نویسنده
چکیده
This paper examines the role of the shift in pension plans — from Defined Benefit to Defined Contribution — in explaining the recent increase in labor supply of older workers. A structural model of consumption, savings, Social Security, and pension plan heterogeneity is estimated using data from the Health and Retirement Study. Model simulations indicate that changes in pension plan composition can explain 10% to 30% percent of the recent increase in labor force participation of the age group 6569, while changes in Social Security rules can explain less than a quarter of the increase in labor supply for this group.
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