Trends in Employment and Social Security Incentives in the Spanish Pension System: 1980-2016

Pilar García-Gómez, Sílvia Garcia-Mandicó, Sergi Jiménez-Martín, Judit Vall-Castelló

Chapter in NBER book Social Security Programs and Retirement around the World: Reforms and Retirement Incentives (2021), Axel Börsch-Supan and Courtney Coile, editors
Conference held December 13-16, 2018
Published in February 2021 by University of Chicago Press
© 2021 by the National Bureau of Economic Research
in NBER Book Series - International Social Security

In this paper, we analyze the association between financial incentives and retirement decisions using aggregate data for over four decades in Spain. We calculate an implicit tax rate on remaining in employment for an additional year and examine its correlation with employment rates for older workers. The results suggest that financial incentives play a role in explaining the retirement patterns of both employed and unemployed workers.

Acknowledgments

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