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

Pilar García-Gómez, Silvia Garcia-Mandicó, Sergi Jimenez-Martin, Judit Vall Castelló

NBER Working Paper No. 25367
Issued in December 2018
NBER Program(s):The Program on Aging, The Labor Studies Program

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.

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Document Object Identifier (DOI): 10.3386/w25367

 
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