Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age
Luc Behaghel
(1, 2)
,
David M. Blau
(3, 4)
Luc Behaghel
- Fonction : Auteur
- PersonId : 743440
- IdHAL : luc-behaghel
- ORCID : 0000-0001-9717-6181
- IdRef : 086016857
Résumé
We use a US Social Security reform as a quasi-experiment to provide evidence on framing effects in retirement behavior. The reform increased the full retirement age (FRA) from 65 to 66 in two-month increments per year of birth. We find strong evidence that the spike in the benefit claiming hazard at 65 moved in lockstep along with the FRA. Results on self-reported retirement and exit from employment go in the same direction. The responsiveness to the new FRA is stronger for people with higher cognitive skills. We interpret the findings as evidence of reference dependence with loss aversion.
Domaines
Gestion des risques [q-fin.RM]Format du dépôt | Notice |
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Type de dépôt | Article dans une revue |
Titre |
en
Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age
|
Résumé |
en
We use a US Social Security reform as a quasi-experiment to provide evidence on framing effects in retirement behavior. The reform increased the full retirement age (FRA) from 65 to 66 in two-month increments per year of birth. We find strong evidence that the spike in the benefit claiming hazard at 65 moved in lockstep along with the FRA. Results on self-reported retirement and exit from employment go in the same direction. The responsiveness to the new FRA is stronger for people with higher cognitive skills. We interpret the findings as evidence of reference dependence with loss aversion.
|
Auteur(s) |
Luc Behaghel
1, 2
, David M. Blau
3, 4
1
PSE -
Paris-Jourdan Sciences Economiques
( 139754 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
3
OSU -
Ohio State University [Columbus]
( 86555 )
- Ohio State University Enarson Hall 154 W 12th Avenue Columbus, Ohio 43210
- États-Unis
4
IZA -
Institute for the Study of Labor
( 142142 )
- Allemagne
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Audience |
Internationale
|
Date de publication |
2012-11
|
Volume |
4
|
Page/Identifiant |
41-67
|
Numéro |
4
|
Public visé |
Scientifique
|
Sous-type de document pour les Articles |
Research article
|
Financement |
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Indexation contrôlée |
|
Mots-clés |
en
Intertemporal Consumer Choice, Life Cycle Models and Saving, Social Security and Public Pensions, Economics of the Elderly, Economics of the Handicapped, Non-labor Market Discrimination, Retirement, Retirement Policies
|
DOI | 10.1257/pol.4.4.41 |
ProdINRA | 199833 |
UT key WOS | 000310565800002 |
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