Table 3 Simulation Results: Proportion of workers whose optimal decision is to retire (Ret), Search or stay inactive (NP); reemployment hazard (Reenter, in brackets); NPC1 annuity is the Net Pension Cost in thousands of euros per person; Pension savings is the difference between the NPC1 after each reform and the one in the BASE. EV1 is the welfare change (reformed vs. BASE economy) measured by an Equivalent Variation. Both NPC1 and EV1 apply only to the unemployed with durations of less than 1 year
From: Fostering job search among older workers: the case for pension reform
Economy | Age range | Labor supply | NPC1 | Pension | EV1 | ||
|---|---|---|---|---|---|---|---|
Ret | Search (Reenter) | NP | Annuity | savings | |||
BASE | 55-59 | 0 | 65.0 (14.5) | 35.0 | |||
60-65 | 29.2 | 11.6 (3.2) | 59.2 | 12.92 | |||
PLE: Perfect | 55-59 | 0 | 83.2 (19.7) | 16.8 | |||
Law Enforcement | 60-65 | 36.6 | 59.1 (16.0) | 4.3 | 11.71 | 1.21 | |
Separate | 55-59 | 0 | 70.2 (15.9) | 29.8 | |||
μ | 60-65 | 59.3 | 30.6 (7.0) | 10.1 | 11.38 | 1.54 | 0.90 |