The Impact of Pension Benefits on The Retirement Age of Oil Industry Employees

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Hajisadegh, Mohammad Hamed | 2021

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 54402 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Vesal, Mohammad
Abstract:
How does retirement plane affect retirement decision? This paper uses the data of 24,000 retirees of oil industry of Iran between 1996 and 2016 to answer the question. We calculate Accrual, Option Value, and Peak Value to evaluate retirement behavior. These variables calculate the difference between utility of retirement in the current year and some time in the future. Theoretically we expect that higher values in these variables lower the probability of retirement. We use two types of probabilistic models, linear and non-linear. In the linear model we run a pooled OLS and in the non-linear model we use a Probit model to estimate the effect of the variables above on the retirement probability. We show that the relation, as expected is negative and the more the model emphasizes the future (i.e., forward looking) the more it has the ability to explain the retirement decision
Keywords:
Peak Value ; Option Value ; Social Security ; Accrual ; Retirement Decition ; Oil Industry Employees ; Forward Looking Models

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