The Effect of Social Security on Retirement Decision in Iran

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Khosroshahi, Amir Reza | 2010

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 40720 (44)
University: Sharif University of Technology
Department: Management and Economics
Advisor(s): Nili, Masoud
Abstract:
The main question of this thesis is if and to what extent does the Social Security retirement benefits cause early retirement. This is important because the more individuals are willing to retire earlier, the larger are the Social Security liabilities to pay the retirement benefts, and also it means that more people are leaving the labor force, hence a lower labor force participation. The research was conducted on a sample of men extracted from the Social Security Or-ganization data sets, employing Option Value and Peak Value models to estiamte a binary choice model. The results indicate that Social Security (in the form of retirement benefits) have a significant effect on retirement decisions and the future path of these benefits are an important determinant of the probability of retirement among older men.
Keywords:
Retirement ; Social Security ; Option Value ; Peak Value