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

Grip, Andries de; Lindeboom, Maarten; Montizaan, Raymond

doi:10.2139/ssrn.1508396

Cited by 22 publications

(16 citation statements)

References 30 publications

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“…Among the studies reviewed in Table 12 that investigate gender heterogeneity, a majority find no significant differences in health outcomes between men and women. Moreover, studies that use a reform-based approach suggest that the potential gender differences are likely to be small or even zero (see, e.g., Hernaes et al 2013;Atalay and Barrett 2014;de Grip et al 2012). A similar picture is acquired from the related literature on the health effects of job loss.…”

Section: Resultsmentioning

confidence: 83%

The effects of increasing the normal retirement age on health care utilization and mortality

Hagen

2017

J Popul Econ

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This essay estimates the health effects of increasing the normal retirement age using Swedish administrative data on drug prescriptions, hospitalizations, and mortality. To this end, I use a reform that raised the age at which broad categories of Swedish local government workers were entitled to retire with full pension benefits from 63 to 65. Estimating the effect of the reform on individuals' health within the age range 65-69, the results show no evidence that the reform impacted mortality or health care utilization. Increasing the normal retirement age may thus have positive government income effects without seriously affecting short to medium run government health care expenditures.

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Section: Resultsmentioning

confidence: 83%

The effects of increasing the normal retirement age on health care utilization and mortality

Hagen

2017

J Popul Econ

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“…It is difficult, however, to measure individual productivity in the public sector. Using the same data as we use, De Grip et al (2012) recently showed that the unexpected drop in pension rights increases the likelihood of becoming depressed. Since depression affects productivity by causing mistakes at work, faulty products as well as increased sickness absence (see OECD, 2008), a mental health variable may serve as a useful alternative indicator for productivity.…”

Section: Alternative Productivity Indicatormentioning

confidence: 99%

“…4 These data were also used by De Grip et al (2012) who found a strong negative effect on the mental health of treated workers, and by Montizaan and Vendrik (2012), who study the impact of a reduction in pension wealth on life satisfaction and job satisfaction. Neither study considered heterogeneous effects that depend on negatively reciprocal motivations.…”

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confidence: 99%

Negative Reciprocity and Retrenched Pension Rights

et al. 2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S ABSTRACT Negative Reciprocity and Retrenched Pension RightsWe document the importance of negatively reciprocal inclinations in labor relationships by showing that a retrenchment of pension rights, which is perceived as unfair, causes a larger reduction in job motivation the stronger workers' negatively reciprocal inclinations are. We exploit unique matched survey and administrative data on male employees in the public sector in the Netherlands and compare the job motivation of employees born in 1950, who faced a substantial retrenchment of their pension rights resulting from a pension reform in 2006, to that of slightly older employees who remain entitled to more generous pension benefits. Job motivation is significantly lower among negatively reciprocal employees who were affected by the reform. The negative effect on job motivation is greater for negative reciprocal employees born very shortly after the cut-off date of January 1, 1950, as well as for those with many untreated colleagues, and who therefore arguably perceive the policy change as being more unfair. We also find that the treatment effect is stronger among workers who are more likely to hold their employer accountable for the drop in their pension rights, that is, those who work for the national government.JEL Classification: D63, J2

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“…In particular, overly optimistic beliefs may lead to under-saving. A recent study (De Grip et al 2012) even suggests that there is also a direct effect of expectations on well-being (implying that the effect of overly optimistic beliefs on life-time well-being is not unambiguously negative.) http://www.izajoels.com/content/1/1/2 It is therefore important to see whether different socio-economic groups have realistic views of the future or not.…”

Section: Introductionmentioning

confidence: 99%

The future of retirement and the pension system: How the public’s expectations vary over time and across socio-economic groups

Bissonnette

Soest

2012

IZA Journal of European Labor Studies

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We analyze expectations of the Dutch population ages 25 and older concerning future generosity of state and occupational pensions, the main pillars of the Dutch pension system. We use rotating panel data with monthly observations from 2006 until 2012 on individuals' subjective expectations concerning changes between now and ten or twenty years from now in the purchasing power of occupational pensions and of old age social security benefits, the eligibility age for old age social security benefits, and the average retirement age ten or twenty years from now. We find significant variation in expectations across socio-economic groups, with more pessimistic expectations amongst higher educated and higher income groups. We also find that expectations have gradually become more pessimistic since the onset of the economic and financial crisis, in line with the plans for reforms that will reduce pension generosity.JEL codes: D84, H55, J26

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

Cited by 22 publications

References 30 publications

The effects of increasing the normal retirement age on health care utilization and mortality

The effects of increasing the normal retirement age on health care utilization and mortality

Negative Reciprocity and Retrenched Pension Rights

The future of retirement and the pension system: How the public’s expectations vary over time and across socio-economic groups

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