Seguridad Social y retiro en Uruguay

Abstract

We estimate structural life-cycle models for retirement behavior using social security work history records of public employees in Uruguay. We analize two alternative models, with and without life insurance. The estimated coefficient of relative risk-aversion is around 1.7, indicating that agents are moderately riskaverse. The estimated discount rate is about 8 percent per annum. The probability of retirement is greater for individuals who have lower propensity to contribute and increases for women and older people. Simulations show a very low impact of moderate policy changes on the retirement age.