Seminarios académicos y conferencias
"Mandatory retirement savings in the presence of an informal labor market"
19 Noviembre 2020 - 17:00 hrs.
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Abstract: This paper shows how taking a job in the informal economy may help to circumvent the borrowing constraints activated by mandatory retirement savings. Agents with present bias may choose to work informally to avoid the mandatory contributions and increase their present consumption, even if they would be more productive in the formal economy. In this case, decreasing the contribution rate will actually increase their savings and welfare.