This paper contributes to the literature on labor market dynamics in four ways. First, unlike most of the existing literature, it uses the Survey of Income and Program Participation (SIPP). This panel survey, with a 32 months window of observation, allows a more precise measure of employment...

Recent research has argued that incentives stemming from social security systems influence the worker’s decision to retire. The experience of Chile, which radically changed its system in 1981, offers an opportunity to test this hypothesis. The new system tightened access to early pensions,...