Health Status, Disability Insurance, and Incentives to Exit the Labor Force in Italy: Evidence from SHARE
This chapter analyzes the retirement behavior of Italian employees by considering different pathways to retirement such as old age, early retirement and disability insurance. In particular, we focus on the role played by health conditions and socio-economic factors beyond and above the financial incentives associated to each pathway. These incentives are measured by the option value of working an extra year vis-à-vis leaving the labor force through one of the alternative routes. The Italian experience has been characterized for many years by a relevant early retirement option, but a renewed interest by workers for disability pensions could stem from the recent pension reforms, which introduced tighter eligibility criteria for early exits.
The financial incentives of the different pathways are used in a dynamic way, controlling for health conditions measured by an overall health index. The econometric estimates are based on the SHARE data: we find that the recent reforms have induced some delay in the retirement decision and that health has important effects on the decision of working in old age.
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The Authors acknowledge financial support from the Italian Ministry of Education, University and Research (MIUR) under grant PRIN 2010T8XAXB. This chapter uses data from SHARELIFE release 1, as of November 24th 2010, and SHARE release 2.5.0, as of May 24th 2011. The SHARE data collection has been primarily funded by the European Commission through the 5th framework programme (project QLK6-CT-2001- 00360 in the thematic programme Quality of Life), through the 6th framework programme (projects SHARE-I3, RII-CT- 2006-062193, COMPARE, CIT5-CT-2005-028857, and SHARELIFE, CIT4-CT-2006-028812) and through the 7th framework programme (SHARE-PREP, 211909 and SHARE-LEAP, 227822). Additional funding from the U.S. National Institute on Aging (U01 AG09740-13S2, P01 AG005842, P01 AG08291, P30 AG12815, Y1-AG-4553-01 and OGHA 04-064, IAG BSR06-11, R21 AG025169) as well as from various national sources is gratefully acknowledged (see www.share-project.org for a full list of funding institutions.)
List as of 10 November 2014:
The SHARE data collection has been funded by the European Commission through the 5th framework programme (project QLK6-CT-2001-00360 in the thematic programme Quality of Life). Further support by the European Commission through the 6th framework programme (projects SHARE-I3, RII-CT-2006-062193, as an Integrated Infrastructure Initiative, COMPARE, CIT5-CT-2005-028857, as a project in Priority 7, Citizens and Governance in a Knowledge Based Society, and SHARE-LIFE (CIT4-CT-2006-028812)) and through the 7th framework programme (SHARE-PREP (No 211909), SHARE-LEAP (No 227822) and M4 (No 261982)) is gratefully acknowledged.
Substantial co-funding for add-ons such as the intensive training programme for SHARE interviewers came from the US National Institute on Aging (U01 AG09740-13S2, P01 AG005842, P01 AG08291, P30 AG12815, R21 AG025169, Y1-AG-4553-01, IAG BSR06-11 and OGHA 04-064). Substantial funding for the central coordination of SHARE came from the German Federal Ministry for Education and Research (Bundesministerium für Bildung und Forschung, BMBF).
SHARE has been part of the ESFRI (European Strategy Forum on Research Infrastructures) roadmap and became the first ERIC (European Research Infrastructure Consortium) with the first wave. National funding is now dominant (see below for details), with substantial support by the European Commission’s DG Employment, Social Affairs and Equal Opportunities to new SHARE countries.We thank, in alphabetical order, Giulia Amaducci, Kevin McCarthy, Hervé Pero, Ian Perry, Robert-Jan Smits, Dominik Sobczak and Maria Theofilatou in DG Research for their continuing support of SHARE. We are grateful for the support by DG Employment, Social Affairs, and Equal Opportunities through Georg Fischer, Ruth Paserman, Fritz von Nordheim, and Jérôme Vignon, by DG Economic and Financial Affairs through Declan Costello, Bartosz Pzrywara and Klaus Regling, by DG Health and Consumer Affairs, through Andrzej Rys, and by the U.S. National Institute on Aging, through Richard Suzman. In Germany, our thanks go to Brunhild Spannhake and Beatrix Vierkorn-Rudolph in the German Federal Ministry for Education and Research as well as Hans Nerlich and Ranja Sakar at the Project Management Agency of the German Aerospace Center.
National funding was provided by:
Austria: Bundesministerium für Wissenschaft und Forschung (BMWf), Austrian Science Foundation (FWF), Österreichische Nationalbank (OeNB)
Belgium: Belgium: wave 4: Belgian Science Policy Administration (BELSPO), Flemish Agency for Innovation by Science and Technology (IWT), University of Liege (ULG) & University of Antwerpen (UA) and wave 5: The Federation Wallonia-Brussels, The Walloon Region; the Hercules foundation (Flemish Government)
Czech Republic: Ministry of Education, Youth and Sports
Denmark: Danish Council for Independent Research – Social Science
France: Caisse des dépôts et consignations (CDC), Caisse nationale d‘assurance maladie (CNAM), Caisse nationale d‘assurance vieillesse (CNAV), Caisse nationale de solidarité pour l‘autonomie (CNSA), Commissariat général du plan, Conseil d‘orientation des retraites (COR), Direction de l‘animation de la recherche, des études et des statistiques du ministère du travail (DARES), Direction de la recherche, des études, de l‘évaluation et des statistiques du ministère de la santé (DREES), Institut de recherche en santé publique (IReSP), Institut national de la statistique et des études économiques (INSEE), Institut national de prévention et d‘éducation pour la santé (INPES) and Ministère de l‘enseignement supérieur et de la recherche
Germany: German Research Fund (grant to research survey methodological questions in wave 4), Forschungsnetzwerk Alterssicherung (FNA), Volkswagenstiftung, German Federal Ministry for Education and Research (Bundesministerium für Bildung und Forschung, BMBF)
Ireland: Irish Research Council for Humanities and Social Sciences
Israel: U.S.National Institute of Aging (R03AG029258, R01AG031729, R21AG025169), National Insurance Institute of Israel, The German-Israeli Foundation for Scientific Research and Development (GIF), Ministry of Science, Ministry of Senior Citizens
Netherlands: The Netherlands Organisation for Scientific Research (NWO), The Dutch Ministry of Education, Culture and Science, The Province of Noord-Brabant, Netspar and Tilburg University
Portugal: Alto Comissariado da Saúde for the national survey, Câmara Municipal de Lisboa, Instituto do Envelhecimento
Slovenia: Ministry of Education, Science, Culture and Sport (MIZKS) in wave 4
Spain: Spanish Ministry of Science and Innovation (MICINN)
Sweden: Swedish Social Insurance Agency
Switzerland: University of Lausanne (UNIL), Département Universitaire de Médecine et Santé Communautaires (DUMSC), HEC Lausanne (Faculté des Hautes Etudes Commerciales), Federal Office for Education and Science (OFES), Swiss National Science Foundation (SNSF)
Franco PeracchiThe Authors acknowledge financial support from the Italian Ministry of Education, University and Research (MIUR) under grant PRIN 2010T8XAXB. This chapter uses data from SHARELIFE release 1, as of November 24th 2010, and SHARE release 2.5.0, as of May 24th 2011. The SHARE data collection has been primarily funded by the European Commission through the 5th framework programme (project QLK6-CT-2001- 00360 in the thematic programme Quality of Life), through the 6th framework programme (projects SHARE-I3, RII-CT- 2006-062193, COMPARE, CIT5-CT-2005-028857, and SHARELIFE, CIT4-CT-2006-028812) and through the 7th framework programme (SHARE-PREP, 211909 and SHARE-LEAP, 227822). Additional funding from the U.S. National Institute on Aging (U01 AG09740-13S2, P01 AG005842, P01 AG08291, P30 AG12815, Y1-AG-4553-01 and OGHA 04-064, IAG BSR06-11, R21 AG025169) as well as from various national sources is gratefully acknowledged (see www.share-project.org for a full list of funding institutions.)
List as of 10 November 2014:
The SHARE data collection has been funded by the European Commission through the 5th framework programme (project QLK6-CT-2001-00360 in the thematic programme Quality of Life). Further support by the European Commission through the 6th framework programme (projects SHARE-I3, RII-CT-2006-062193, as an Integrated Infrastructure Initiative, COMPARE, CIT5-CT-2005-028857, as a project in Priority 7, Citizens and Governance in a Knowledge Based Society, and SHARE-LIFE (CIT4-CT-2006-028812)) and through the 7th framework programme (SHARE-PREP (No 211909), SHARE-LEAP (No 227822) and M4 (No 261982)) is gratefully acknowledged.
Substantial co-funding for add-ons such as the intensive training programme for SHARE interviewers came from the US National Institute on Aging (U01 AG09740-13S2, P01 AG005842, P01 AG08291, P30 AG12815, R21 AG025169, Y1-AG-4553-01, IAG BSR06-11 and OGHA 04-064). Substantial funding for the central coordination of SHARE came from the German Federal Ministry for Education and Research (Bundesministerium für Bildung und Forschung, BMBF).
SHARE has been part of the ESFRI (European Strategy Forum on Research Infrastructures) roadmap and became the first ERIC (European Research Infrastructure Consortium) with the first wave. National funding is now dominant (see below for details), with substantial support by the European Commission’s DG Employment, Social Affairs and Equal Opportunities to new SHARE countries.We thank, in alphabetical order, Giulia Amaducci, Kevin McCarthy, Hervé Pero, Ian Perry, Robert-Jan Smits, Dominik Sobczak and Maria Theofilatou in DG Research for their continuing support of SHARE. We are grateful for the support by DG Employment, Social Affairs, and Equal Opportunities through Georg Fischer, Ruth Paserman, Fritz von Nordheim, and Jérôme Vignon, by DG Economic and Financial Affairs through Declan Costello, Bartosz Pzrywara and Klaus Regling, by DG Health and Consumer Affairs, through Andrzej Rys, and by the U.S. National Institute on Aging, through Richard Suzman. In Germany, our thanks go to Brunhild Spannhake and Beatrix Vierkorn-Rudolph in the German Federal Ministry for Education and Research as well as Hans Nerlich and Ranja Sakar at the Project Management Agency of the German Aerospace Center.
National funding was provided by:
Austria: Bundesministerium für Wissenschaft und Forschung (BMWf), Austrian Science Foundation (FWF), Österreichische Nationalbank (OeNB)
Belgium: Belgium: wave 4: Belgian Science Policy Administration (BELSPO), Flemish Agency for Innovation by Science and Technology (IWT), University of Liege (ULG) & University of Antwerpen (UA) and wave 5: The Federation Wallonia-Brussels, The Walloon Region; the Hercules foundation (Flemish Government)
Czech Republic: Ministry of Education, Youth and Sports
Denmark: Danish Council for Independent Research – Social Science
France: Caisse des dépôts et consignations (CDC), Caisse nationale d‘assurance maladie (CNAM), Caisse nationale d‘assurance vieillesse (CNAV), Caisse nationale de solidarité pour l‘autonomie (CNSA), Commissariat général du plan, Conseil d‘orientation des retraites (COR), Direction de l‘animation de la recherche, des études et des statistiques du ministère du travail (DARES), Direction de la recherche, des études, de l‘évaluation et des statistiques du ministère de la santé (DREES), Institut de recherche en santé publique (IReSP), Institut national de la statistique et des études économiques (INSEE), Institut national de prévention et d‘éducation pour la santé (INPES) and Ministère de l‘enseignement supérieur et de la recherche
Germany: German Research Fund (grant to research survey methodological questions in wave 4), Forschungsnetzwerk Alterssicherung (FNA), Volkswagenstiftung, German Federal Ministry for Education and Research (Bundesministerium für Bildung und Forschung, BMBF)
Ireland: Irish Research Council for Humanities and Social Sciences
Israel: U.S.National Institute of Aging (R03AG029258, R01AG031729, R21AG025169), National Insurance Institute of Israel, The German-Israeli Foundation for Scientific Research and Development (GIF), Ministry of Science, Ministry of Senior Citizens
Netherlands: The Netherlands Organisation for Scientific Research (NWO), The Dutch Ministry of Education, Culture and Science, The Province of Noord-Brabant, Netspar and Tilburg University
Portugal: Alto Comissariado da Saúde for the national survey, Câmara Municipal de Lisboa, Instituto do Envelhecimento
Slovenia: Ministry of Education, Science, Culture and Sport (MIZKS) in wave 4
Spain: Spanish Ministry of Science and Innovation (MICINN)
Sweden: Swedish Social Insurance Agency
Switzerland: University of Lausanne (UNIL), Département Universitaire de Médecine et Santé Communautaires (DUMSC), HEC Lausanne (Faculté des Hautes Etudes Commerciales), Federal Office for Education and Science (OFES), Swiss National Science Foundation (SNSF) -
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