Parametric Pension Reform and the Intensive Margin of Labor Supply, Evidence from Colombia

Darwin Cortes, Dario Maldonado Carrizosa, Giselle Vesga Reyes

Research output: Working paper

Abstract

We analyze the effect of a parametric reform of the fully-funded pension regime in Colombia on the intensive margin of the labor supply. We take advantage of a threshold defined by law in order to identify the causal effect using a regression discontinuity design. We find that a pension system that increases retirement age and the minimum weeks during which workers must contribute to claim pension benefits causes an increase of around 2 hours on the number of weekly worked hours; this corresponds to 4% of the average number of weekly worked hours or around 14% of a standard deviation of weekly worked hours. The effect is robust to different specifications, polynomial orders and sample sizes.
Translated title of the contributionReforma Paramétrica de Pensiones y el Margen Intensivo de la Oferta Laboral, Evidencia desde Colombia
Original languageEnglish (US)
Number of pages17
StatePublished - 2015

Fingerprint Dive into the research topics of 'Parametric Pension Reform and the Intensive Margin of Labor Supply, Evidence from Colombia'. Together they form a unique fingerprint.

Cite this