Table 1 Institutional non-calibrated parameters: values assigned to observable parameters in the benchmark economy (all nominal amounts are expressed in thousands of 2002 euros)
From: Fostering job search among older workers: the case for pension reform
Pensions | Unemployment | ||
|---|---|---|---|
Early/Normal Ret. age | 60-65 | Benefit coverage h=1 | 0.65 |
Annual early ret. penalty, μ 1 | 0.07 | Benefit coverage h=2 | 0.6 |
Initial replacement rate, μ 0 | 0.65 | ||
Bonus Post 65, \(\mu _{1}^{+65}\) | 0.02 | ||
Maximum pensions, B max | 26.69 | Maximum benefit, b max | 10.1 |
Minimum pensions, B min | 6.14 | Minimum benefit, b min | 4.68 |
Minimum pensions, \(B^{65}_{\textit {min}}\) | 6.63 | Unemployment subsidy, \(b^{s}_{\textit {min}}\) | 4.0 |
Lags in pension formula, D | 15 | ||
Social contributions | |||
Pay-roll rate, ς | 0.356 | Minimum contribution, C min | 7.29 |
Maximum contribution, C max | 31.29 | Min. contrib. subsidy, \(C_{\textit {min}}^{s}\) | 6.2 |