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Table 6 Parameters calibrated

From: Pension schemes and labor supply in the formal and informal sector

Parameters calibrated
Name Symbol Value
Thresholds
 Minimum full retirement age A 1 65
 Advanced age retirement age A 2 70
 Death \(\overline {A}\) 80
 Years of formal work to obtain FP F 1 30
 Years of formal work to achieve AP F 2 10
Replacement rates
 FP 3 (40 years of formal work) r F−40 1.13
 FP 2 (35 years of formal work) r F−35 0.96
 FP 1 (30 years of formal work) r F−30 0.81
 AP r A 0.7* r F−30
 Unemployment benefits for former formal workers b 2 0.6
  1. Source: (Forteza and Ourens 2009) and (Rofman et al. 2010)