Retirement, Expectations and Realizations. Essays of the Netherlands and Italy

PhD Thesis# 336
Author:
Dr Mauro (M.) Mastrogiacomo
Supervisor(s):
Prof.dr. M. Lindeboom, R.J.M. Alessie
Date:
2004-06-17

Abstract

Increased longevity and younger retirement ages put under pressure the welfare state in most European countries. This is the case for the Netherlands and Italy, the two countries considered in this study. Economists’ attention to the aging problem is constantly increasing, and one of the areas that is quickly developing is the prediction of the future under uncertainty. The theory of expected utility and the analysis of self-reported expectations about the future are two of the ways to deal with this problem. This thesis explores different novel issues using both methodologies. For the Netherlands, we find that the recent policy developments for the old age pension regulations (AOW) may sort the unintended effect of lowering female labor market participation, when women cohabit with an older partner. We also explore the expectations of those, in the Netherlands, who are about to retire and find that most people fear a worsening of their finances after retirement. However we also find that their fears are unjustified. In Italy the pension reforms of the 90’s have induced employees to postpone their retirement plans, but have also increased uncertainty about the future.

Publisher of the TI-theses is: Rozenberg Publishing Services