Retirement Behavior in the U.S. and Europe

Jochem de Bresser, Raquel Fonseca, Pierre-Carl Michaud

Research output: Working paperDiscussion paperOther research output

Abstract

In this paper, we develop a retirement model featuring various endogenous exit routes: unemployment, disability, private and public pensions. The model allows for saving and uncertainty along several dimensions including health and mortality. The preference parameters are estimated on longitudinal data from the U.S. and Europe. We analyze the roles played by preferences and institutions in explaining international heterogeneity in retirement behavior. Our preliminary estimates suggest that a model with a single set of preferences for individuals from the U.S., the Netherlands and Spain does not fit the data well. If Europeans were to have the same preferences as Americans, they would save less than they actually do. Furthermore, the Dutch and Spanish would work more hours than observed in the data.
Original languageEnglish
Place of PublicationTilburg
PublisherNETSPAR
Number of pages63
Publication statusUnpublished - 2017

Publication series

NameNetspar academic series
No.DP 11/2017-018

Fingerprint

Retirement behavior
Unemployment
Uncertainty
Private pensions
Mortality
Spain
Longitudinal data
Retirement
Exit
Health
Work hours
The Netherlands
Public pensions

Cite this

de Bresser, J., Fonseca, R., & Michaud, P-C. (2017). Retirement Behavior in the U.S. and Europe. (Netspar academic series; No. DP 11/2017-018). Tilburg: NETSPAR.
de Bresser, Jochem ; Fonseca, Raquel ; Michaud, Pierre-Carl. / Retirement Behavior in the U.S. and Europe. Tilburg : NETSPAR, 2017. (Netspar academic series; DP 11/2017-018).
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de Bresser, J, Fonseca, R & Michaud, P-C 2017 'Retirement Behavior in the U.S. and Europe' Netspar academic series, no. DP 11/2017-018, NETSPAR, Tilburg.

Retirement Behavior in the U.S. and Europe. / de Bresser, Jochem; Fonseca, Raquel; Michaud, Pierre-Carl.

Tilburg : NETSPAR, 2017. (Netspar academic series; No. DP 11/2017-018).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Retirement Behavior in the U.S. and Europe

AU - de Bresser, Jochem

AU - Fonseca, Raquel

AU - Michaud, Pierre-Carl

PY - 2017

Y1 - 2017

N2 - In this paper, we develop a retirement model featuring various endogenous exit routes: unemployment, disability, private and public pensions. The model allows for saving and uncertainty along several dimensions including health and mortality. The preference parameters are estimated on longitudinal data from the U.S. and Europe. We analyze the roles played by preferences and institutions in explaining international heterogeneity in retirement behavior. Our preliminary estimates suggest that a model with a single set of preferences for individuals from the U.S., the Netherlands and Spain does not fit the data well. If Europeans were to have the same preferences as Americans, they would save less than they actually do. Furthermore, the Dutch and Spanish would work more hours than observed in the data.

AB - In this paper, we develop a retirement model featuring various endogenous exit routes: unemployment, disability, private and public pensions. The model allows for saving and uncertainty along several dimensions including health and mortality. The preference parameters are estimated on longitudinal data from the U.S. and Europe. We analyze the roles played by preferences and institutions in explaining international heterogeneity in retirement behavior. Our preliminary estimates suggest that a model with a single set of preferences for individuals from the U.S., the Netherlands and Spain does not fit the data well. If Europeans were to have the same preferences as Americans, they would save less than they actually do. Furthermore, the Dutch and Spanish would work more hours than observed in the data.

M3 - Discussion paper

T3 - Netspar academic series

BT - Retirement Behavior in the U.S. and Europe

PB - NETSPAR

CY - Tilburg

ER -

de Bresser J, Fonseca R, Michaud P-C. Retirement Behavior in the U.S. and Europe. Tilburg: NETSPAR. 2017. (Netspar academic series; DP 11/2017-018).