Home > Research . Search . Country . Browse . Small Grants

PSC In The News

RSS Feed icon

Brown: Evidence indicates increasing minimum wage has a modest negative impact on employment in the short term

Wagner and Heeringa study facets of suicide risk among US Army soldiers

Shaefer on study showing US spends less on poorest children, more on the elderly, than it did 20 years ago

More News

Highlights

Call for Papers: PSID User Conference 2018: Child Wellbeing and Outcomes in Childhood, Young Adulthood, and over the Lifecourse

Martha Bailey elected to the board of the Society of Labor Economists

Patrick Kline wins SOLE's Sherwin Rosen Prize for "Outstanding Contributions in the Field of Labor Economics"

Charlie Brown elected to the board of the Society of Labor Economists

More Highlights

Next Brown Bag

More PSC brown bags, Fall 2018

Pensions, Retirement, and the Disutility of Labor: Bunching in Brazil

a PSC Small Fund Research Project

Investigator:   Benjamin Thompson

Elderly workers in developing countries face certain frictions, such as credit constraints, in their retirement decisions that may not be as common among their counterparts in the developed world, and these concerns may lead workers to work more or less than their preferred number of years. In this study, I firstly use regression discontinuity methods to show that a large fraction of urban male heads of households in Brazil (roughly 45%) react contemporaneously to pension eligibility by retiring. Because retirement is not required to receive the pension and because the return to working does not change discontinuously at the eligibility cutoff, workers should not react contemporaneously unless optimization frictions, such as credit constraints, are at work. Secondly, I develop a model of retirement decisions that explores how pensions in the face of credit constraints can influence such decisions, and I discuss applications of this model to determine how the observed behavior in conjunction with the model can be used to make inferences about welfare and labor supply decisions in the face of different pension values.

Funding Period: 01/31/2017 to 08/31/2017

Support PSC's Small Grant Program

Search . Browse . Next