Improving Information for Social Policy Decisions -- The Uses of Microsimulation Modeling: Volume II, Technical Papers (1991)
Chapter: Interactions Between Pension and Social Security Eligibility and Retirement in PRISM
TABLE 3 Determinants of Major Events Simulated by PRISM
|
Event or Characteristic |
Variables Used to Determine Event |
|
Simulation of Longitudinal Histories |
|
|
Demographic events |
|
|
Death |
Disability status, age, sex, years of disability |
|
Disability |
|
|
Onset |
Age, sex |
|
Recovery |
Age, sex, years of disability |
|
Divorce |
Age of husband and wife |
|
Marriage |
Age, sex, previous marital status |
|
Mate matching |
Age of male, age of female |
|
Birth |
Marital status, age, number of children, employment status last year |
|
Labor force events |
|
|
Hours worked per year |
Hours last year, age, sex, marital status, education, composite of hours in previous 3 years, female with young children, female divorced or widowed this year, receiving pension or social security income |
|
Wage rate |
Age, sex, whether changed job this year, whether unemployed this year |
|
Job change |
Hours worked, age, years on job |
|
Industry |
Age, education, previous industry, full- or part-time status |
|
Pension characteristics |
|
|
Pension coverage |
Age, industry, full- or part-time status, wage rate |
|
Pension plan assignment |
Industry, multi- or single employer plan in 1979, hourly or salaried status |
|
Retirement |
|
|
Pension acceptance |
Age, sex (conditional on eligibility) |
|
Social security acceptance |
Age, sex (conditional on eligibility) |
|
Individual retirement accounts |
|
|
Adoption |
Age, family earnings, pension coverage |
|
Contributions |
Sex, marital status, family earnings |
|
SOURCE: Kennell and Sheils (1986). |
|
Interactions Between Pension and Social Security Eligibility and Retirement in PRISM
Individuals who become eligible for social security are selected to accept social security on the basis of probabilities that depend on age and sex. (Based on these probabilities, a majority of individuals will retire at age 65.) All individuals who become eligible for a private pension accept their pension at the normal plan retirement age, generally 65. Data on the labor force participation of the elderly indicate that individuals who have accepted retirement income are likely
