Upjohn Author ORCID Identifier

https://orcid.org/0000-0001-9158-2592

Publication Date

6-19-2017

Series

Upjohn Institute working paper ; 15-223

**Published Version**

In American Economic Journal: Economic Policy 10(3): 284-308

DOI

10.17848/wp15-223

Abstract

This paper examines the degree of substitution between public pension wealth and private saving by studying Poland’s 1999 pension reform. The analysis identifies the effect of pension wealth on private saving using cohort-by-time variation in pension wealth induced by the reform. The estimates, which are based on the 1997–2003 Polish Household Budget Surveys, show that 1 Polish zloty (PLN) less of pension wealth increases household saving by 0.3 PLN. Among highly-educated households, pension wealth and private saving appear to be close substitutes.

Issue Date

February 1, 2015 ; Revised June 19, 2017

Note

Revised June 19, 2017

Sponsorship

Polish National Science Centre

Subject Areas

LABOR MARKET ISSUES; Retirement and pensions

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Citation

Lachowska, Marta and Michał Myck. 2017. "The Effect of Public Pension Wealth on Saving and Expenditure." Upjohn Institute Working Paper 15-223. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp15-223