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While the return to one additional year of work experience is 2.2% in urban areas, it is not significantly different from zero in rural areas.
Therefore, it takes into account that an additional year of work sustains the option of retiring at an even later date.
The coefficients of the work experience variables can be interpreted as the return to an additional year of work experience in the respective year on current wages.
14This figure is calculated as the difference between the value of an additional year of work experience when q = 0 and that when q = ln(0.1).
Moreover, the 2002 Amendment introduced a premium for late retirement, so that the pension was increased by 2%% per additional year of work beyond 65, if the worker had more than 35 years of contribution.
16This figure is calculated as the derivative of equation (7) with respect to s If evaluated at the coefficients of Model 4, f dip =1 and q = 0. Note that for this calculation S is set equal to s f. 17This figure is calculated as the difference between the value of an additional year of work experience when x = 0 and that when q = 0.
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In a pension freeze, employees keep the benefits they have earned, but stop building up new benefits with additional years of work.
Because the three pension plans will be frozen instead of terminated, American's mechanics, ramp workers, flight attendants and other workers will keep the pensions they have earned to this point, but give up the chance to add to their benefits with additional years of work.
People who do not meet the minimum years of contributions, can compensate each year of missing contribution with two additional years of work, counted after reaching the minimum retirement age.
The incentive variables capture the substitution effect: the higher the price for leisure, the lower its demand, so that if there is a larger financial incentive to additional years of work, then individuals will retire later.
Staff who had an educational background in pharmacy and additional years of work experience were positively associated with the reported amount of information gathered.
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