Do workers retire early because they fear pension reforms? In this paper with @PieraBello and @vingalasso we study how policy uncertainty shapes retirement decisions. A summary thread🧵1/9 https://t.co/ZvreijSxL1
Policy takeaway:
1⃣Frequent pension reforms don’t just change incentives, they influence behaviour before reforms happen.
2⃣Uncertainty itself has real labor supply effects
3⃣Designing and reforming pension systems should account for this implicit cost. 9/9
Do workers retire early because they fear pension reforms? In this paper with @PieraBello and @vingalasso we study how policy uncertainty shapes retirement decisions. A summary thread🧵1/9 https://t.co/ZvreijSxL1
How much is this insurance worth?
On average income (€35k), workers are willing to give up about €481 per year to insure against pension reform risk. That’s a measurable price of policy uncertainty. 8/9