
Contents
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1.1 Introduction 1.1 Introduction
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1.2 Social Security Schemes 1.2 Social Security Schemes
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1.2.1 Wage Earners' Scheme 1.2.1 Wage Earners' Scheme
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1.2.2 Public-Sector Employees 1.2.2 Public-Sector Employees
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1.2.3 Self-Employed 1.2.3 Self-Employed
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1.2.4 Guaranteed Minimum Income 1.2.4 Guaranteed Minimum Income
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1.2.5 Labor Market and Benefit-Program Participation 1.2.5 Labor Market and Benefit-Program Participation
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1.2.6 Pathways to Retirement 1.2.6 Pathways to Retirement
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1.3 Data Overview 1.3 Data Overview
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1.3.1 Statistiques Fiscales des Revenus (SFR) 1.3.1 Statistiques Fiscales des Revenus (SFR)
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1.3.2 Comptes Individuels de Pension (CIP) 1.3.2 Comptes Individuels de Pension (CIP)
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1.3.3 Institut National d̓Assurance Sociale des Travailleurs Indépendants (INASTI) 1.3.3 Institut National d̓Assurance Sociale des Travailleurs Indépendants (INASTI)
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1.3.4 Finance Ministry, Department of Pensions 1.3.4 Finance Ministry, Department of Pensions
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1.3.5 The 1991 Census 1.3.5 The 1991 Census
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1.4 Earnings Histories and Projections 1.4 Earnings Histories and Projections
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1.5 Construction of Incentive Measures 1.5 Construction of Incentive Measures
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1.6 Regression Results 1.6 Regression Results
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1.7 Simulations 1.7 Simulations
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1.8 Conclusions 1.8 Conclusions
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References References
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1 Micro-Modeling of Retirement in Belgium
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Published:March 2004
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Abstract
The widespread use of various early retirement programs makes Belgium the country with the lowest average retirement age in the Western world, which is approximately fifty-seven years old for men. This chapter, which studies the incentives pushing people toward retiring early, explicitly models the incentive structure built into the various public retirement and early retirement systems. First, it computes indicators of benefit entitlement, such as social security wealth, and then defines several different incentive measures based on the notion of social security wealth. In a third step, the empirical estimation of microeconometric probit and option value models is performed. From an exceptionally rich and broad database, an accurate measure of all individuals' pension wealth was determined, as well as of the implicit tax rates the elderly workers face in case of delayed retirement.
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