Hybrid seminar: The Social Multiplier of Pension Reform
On Tuesday June 4th, 2024, Simon Rabaté (Institut National d’Études Démographiques (INED) & CPB) will give a presentation titled: "The Social Multiplier of Pension Reform." To attend this seminar, please send an e-mail to Simone Pailer (secretaressepool@cpb.nl). You will be registered at the reception or will receive a Teams invitation via Outlook.
We study the influence of family members, neighbors and coworkers on retirement behavior. To estimate causal retirement spillovers between individuals, we exploit a pension reform in the Netherlands that creates exogenous variation in peers’ retirement ages, and we use administrative data on the full Dutch population. We find large spillovers in couples, primarily due to women reacting to their husband’s retirement choices. Consistent with homophily in social interactions, the influence of the average sibling, neighbor and coworker is modest, but sizable spillovers emerge between similar individuals in these groups. Additional evidence suggests both leisure complementarities and the transmission of social norms as mechanisms behind retirement spillovers. Our findings imply that pension reforms have a large social multiplier, amplifying their overall impact on retirement behavior by 40%.
Contacts
