Retirement Income Security and Wellbeing in Canada Kevin Milligan ~ Vancouver School of Economics ~ University of British Columbia

Retirement Income Security and Wellbeing in Canada

with Michael Baker and Jonathan Gruber
NBER Working Paper No. 14667, January 2009.
Google Scholar entry.

Abstract:

We examine the effect of Canada's retirement income system on the wellbeing of Canadian elderly. We first provide graphical comparisons of measures of income, consumption, and happiness for the elderly compared to the nonelderly for a time period spanning 1969 to 2002. Next, we present regression analysis of the relationship between income from public pension programs and our measures of wellbeing. We find a significant and strong relationship between income and consumption and the level of benefits received. We also find strong evidence that income poverty decreases are causally related to increases in benefits. Interestingly, we do not find evidence that consumption poverty changed, suggesting that income poor elderly may find a way to smooth consumption in the absence of government benefits.

Versions:

NBER Working Paper No. 14667, January 2009: Abstract/Paper.

Draft, December 2005: PDF.


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