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dc.titlePublic Pensions and the Strategic Timing of Formal Employment
dc.contributor.authorVera-Cossio, Diego A.
dc.contributor.authorBosch, Mariano
dc.contributor.authorLeganza, Jonathan M
dc.contributor.authorMojica Uruena, Tatiana
dc.contributor.authorOliveri, María Laura
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageEcuador
dc.date.available2025-06-24T00:06:00
dc.date.issue2025-06-24T00:06:00
dc.description.abstractWe study how public pensions impact lifecycle labor supply decisions. Our analysis centers on pension eligibility rules in Ecuador. We first use administrative data to document and unpack retirement spikes at eligibility ages. Next, we use survey data and regression discontinuity to investigate whether eligibility rules influence earlier-in-life decisions about when to work formally versus informally. We find discontinuous increases in transitions to formal employment at 50, consistent with forward-looking people timing employment to minimize social security contributions while maintaining benefit eligibility. Evidence suggests that small and family firms, where employees and employers may readily coordinate, help facilitate these transitions.
dc.format.extent66
dc.identifier.doihttp://dx.doi.org/10.18235/0013583
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Public-Pensions-and-the-Strategic-Timing-of-Formal-Employment.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectPublic Expenditure
dc.subjectPopulation Aging
dc.subjectEmployment-Based Pension
dc.subjectLabor Force
dc.subjectFormal Labor
dc.subjectPension Systems
dc.subjectPension Regulation
dc.subjectSmall Business
dc.subjectSocial Security
dc.subjectLabor Supply
dc.subjectReplacement Rate
dc.subject.jelcodeH55 - Social Security and Public Pensions
dc.subject.jelcodeJ26 - Retirement • Retirement Policies
dc.subject.jelcodeJ46 - Informal Labor Markets
dc.subject.jelcodeO12 - Microeconomic Analyses of Economic Development
idb.identifier.pubnumberIDB-WP-01700
idb.operationRG-K1415
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