From: Pension schemes and labor supply in the formal and informal sector
Parameters estimated by simulated method of moments | |||
---|---|---|---|
Name | Symbol | Value | Standard deviation |
Discount factor | β | 0.9475 | (0.0014) |
Risk aversion | γ | 1.2757 | (0.0018) |
Benefits B 1(S) | |||
Medium education | B 1(2) | 0.4691 | (0.0004) |
High education | B 1(3) | 0.9382 | (0.0002) |
Home production in active life B 2(X X,S) | |||
Constant | b 22 | 100.9925 | (5.589) |
Low education | b 21(1) | 38.1481 | (0.781) |
Medium education | b 21(2) | 36.9016 | (1.631) |
High education | b 21(3) | 49.5058 | (2.396) |
Low education | b 23(1) | 43.465 | (1.090) |
Medium education | b 23(2) | 51.5392 | (0.925) |
High education | b 23(3) | 57.3335 | (2.557) |
Home production in retirement life B 3(S) | |||
SP | b 3 | 1838.1 | (2.0) |
Low education | b 31(1) | 1060.395 | (1.87) |
Medium education | b 31(2) | 3182.1625 | (48.91) |
High education | b 31(3) | 2113.5710 | (112.4) |
Cost of entering in formality | |||
Age multiplier | Π | 97.6199 | (4.09) |
Informal–formal (low education) | ϕ 11(1) | 1.18 | (0.0141) |
Informal–formal (medium education) | ϕ 11(2) | 0.591 | (0.0) |
Informal–formal (high education) | ϕ 11(3) | 0.0004 | (0.0) |
Unemployed–formal (low education) | ϕ 12(1) | 45.044 | (1.22) |
Unemployed–formal (medium education) | ϕ 12(2) | 4.504 | (0.12) |
Unemployed–formal (high education) | ϕ 12(3) | 0.015 | (0.0) |
Shocks | |||
Std. deviation informal | σ i | 0.3602 | (0.00) |
Std. deviation formal | σ f | 0.2109 | (0.00) |