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Table 2 Labor supply adjustment for heterogeneous agents—final steady state

From: Reforming retirement age in DB and DC pension systems in an aging OLG economy with heterogenous agents

Pension system

Defined benefit

Defined contribution

Overall adjustment

Ï• multiplier

Ï• multiplier

in labor supply

0.5 (%)

1 (%)

1.5 (%)

2 (%)

0.5 (%)

1 (%)

1.5 (%)

2 (%)

δ multiplier

0.98

123

119

117

117

119

117

117

117

 

1

112

113

115

117

109

112

115

117

 

1.02

100

108

113

117

97

107

113

117

  1. The fully inelastic adjustment, without any behavioral response, implies increase in labor supply by 17.5%. For brevity, we omit ω, since it had negligible and only level effect on labor supply; detailed results available upon request