Behavioral responses to public pension cuts : evidence from the Greek financial crisis
Author(s)Zaverdinos, Iason(Iason Nikolaos)
Massachusetts Institute of Technology. Department of Economics.
James M. Poterba.
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The austerity measures that were adopted in the 2010-2015 period in response to the Greek αnancial crisis included cutbacks in the public sector on a scale that has rarely been seen in other nations. Pensions for those receiving beneαts were cut by up to 50.1% and monthly salaries for public sector employees were reduced substantially. Most of the analysis of these reforms has focused on the macroeconomic eﬀects on the government budget. This project uses data from household budget surveys to assess the eﬀects of these cutbacks on individuals approaching retirement as well as those who had retired under the prior system. I ﬁnd that both income and consumption of households with higher initial earnings decreased disproportionately more than those with lower earnings, in line with the austerity measures implemented. I also ﬁnd that the income changes were negatively correlated with mortality rates.
Thesis: S.M., Massachusetts Institute of Technology, Department of Economics, May, 2020Cataloged from the official PDF of thesis.Includes bibliographical references (pages 41-44).
DepartmentMassachusetts Institute of Technology. Department of Economics
Massachusetts Institute of Technology