Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements

Detalhes bibliográficos
Autor(a) principal: Bravo, Jorge M.
Data de Publicação: 2022
Outros Autores: Herce, Jose A.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/134679
Resumo: Bravo, J. M., & Herce, J. A. (2022). Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements. Journal of Pension Economics and Finance, 21(2), 191 - 217. [Advanced online publication on 22 July 2020]. Doi: https://doi.org/10.1017/S1474747220000189
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spelling Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlementsLongevity heterogeneityPension creditsPension entitlementsRestoration effectsScarring effectsUnemployment breaksFinanceEconomics and EconometricsOrganizational Behavior and Human Resource ManagementSDG 10 - Reduced InequalitiesSDG 8 - Decent Work and Economic GrowthSDG 5 - Gender EqualitySDG 3 - Good Health and Well-beingSDG 1 - No PovertyBravo, J. M., & Herce, J. A. (2022). Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements. Journal of Pension Economics and Finance, 21(2), 191 - 217. [Advanced online publication on 22 July 2020]. Doi: https://doi.org/10.1017/S1474747220000189Unemployment periods and other career breaks have long-term scarring effects on future labour market possibilities, permanently affecting workers' retirement income and standard of living as pensioners. Previous literature has focused on the impact of job loss on working careers with little attention to its impact on pension wealth, particularly the extent to which longevity heterogeneity amplifies unemployment scars. This paper investigates the effect of single and multiple unemployment spells on the lifetime pension entitlements of earnings-related contributory pension schemes, considering the timing and duration of breaks, alternative lifecycle labour earnings profiles, scarring and restoration effects on labour market re-entry, the existence of pension credits and pension accruals for periods spent outside the labour market, longevity heterogeneity, and the accumulation and decumulation redistributive features of the pension scheme. Pension entitlements are estimated using a backward-looking simulation approach based on the actual Portuguese public pension system rules and stylized labour market profiles identified in the SHARE Job Episodes Panel data using a sequence analysis. Longevity heterogeneity is modelled using a stochastic mortality model with a frailty model. Our results show that the timing and duration of unemployment periods is critical, that scarring effects amplify pension wealth losses, that minimum pension provisions, pension credits and pension scheme redistributive features can partially mitigate the impact of unemployment periods on future entitlements, and that the presence of positive correlation between lifetime income and longevity career breaks can amplify the asymmetry in the distribution of pension entitlements across income groups.NOVA Information Management School (NOVA IMS)Information Management Research Center (MagIC) - NOVA Information Management SchoolRUNBravo, Jorge M.Herce, Jose A.2022-03-16T23:20:52Z2022-04-012022-04-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article26application/pdfhttp://hdl.handle.net/10362/134679eng1474-7472PURE: 26202918https://doi.org/10.1017/S1474747220000189info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-05-22T18:00:14Zoai:run.unl.pt:10362/134679Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-05-22T18:00:14Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
title Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
spellingShingle Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
Bravo, Jorge M.
Longevity heterogeneity
Pension credits
Pension entitlements
Restoration effects
Scarring effects
Unemployment breaks
Finance
Economics and Econometrics
Organizational Behavior and Human Resource Management
SDG 10 - Reduced Inequalities
SDG 8 - Decent Work and Economic Growth
SDG 5 - Gender Equality
SDG 3 - Good Health and Well-being
SDG 1 - No Poverty
title_short Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
title_full Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
title_fullStr Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
title_full_unstemmed Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
title_sort Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements
author Bravo, Jorge M.
author_facet Bravo, Jorge M.
Herce, Jose A.
author_role author
author2 Herce, Jose A.
author2_role author
dc.contributor.none.fl_str_mv NOVA Information Management School (NOVA IMS)
Information Management Research Center (MagIC) - NOVA Information Management School
RUN
dc.contributor.author.fl_str_mv Bravo, Jorge M.
Herce, Jose A.
dc.subject.por.fl_str_mv Longevity heterogeneity
Pension credits
Pension entitlements
Restoration effects
Scarring effects
Unemployment breaks
Finance
Economics and Econometrics
Organizational Behavior and Human Resource Management
SDG 10 - Reduced Inequalities
SDG 8 - Decent Work and Economic Growth
SDG 5 - Gender Equality
SDG 3 - Good Health and Well-being
SDG 1 - No Poverty
topic Longevity heterogeneity
Pension credits
Pension entitlements
Restoration effects
Scarring effects
Unemployment breaks
Finance
Economics and Econometrics
Organizational Behavior and Human Resource Management
SDG 10 - Reduced Inequalities
SDG 8 - Decent Work and Economic Growth
SDG 5 - Gender Equality
SDG 3 - Good Health and Well-being
SDG 1 - No Poverty
description Bravo, J. M., & Herce, J. A. (2022). Career breaks, broken pensions? Long-run effects of early and late-career unemployment spells on pension entitlements. Journal of Pension Economics and Finance, 21(2), 191 - 217. [Advanced online publication on 22 July 2020]. Doi: https://doi.org/10.1017/S1474747220000189
publishDate 2022
dc.date.none.fl_str_mv 2022-03-16T23:20:52Z
2022-04-01
2022-04-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/134679
url http://hdl.handle.net/10362/134679
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 1474-7472
PURE: 26202918
https://doi.org/10.1017/S1474747220000189
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 26
application/pdf
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv mluisa.alvim@gmail.com
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