Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295758 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16735
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Over the years, the Belgian social security system has undergone substantial reform with a prime focus on increasing older worker labor force participation. The paper explores the effect of past reforms on inequality in old age. We distinguish two separate effects: The mechanical effect considers the change in inequality and expected benefit levels due to the reforms for a fixed retirement age distribution. The behavioral effect accounts for the endogenous change caused by changes in the incentives to work. Our results show that mechanically, reforms have led to losses in expected benefits for all but the lowest income quintile. Behavioral changes had a positive but orders of magnitude smaller effect. Overall, inequality decreased as a result of reforms.
Subjects: 
social security and public pensions
old-age labor supply
retirement
pension reforms
inequality
JEL: 
D63
H55
I38
J26
Document Type: 
Working Paper

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