Trends in Employment and Social Security Incentives in the Spanish Pension System: 1980-2016
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Chapter in forthcoming NBER book Social Security Programs and Retirement around the World: Reforms and Retirement Incentives, Axel Börsch-Supan and Courtney Coile, editors
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.