Retirement and the Poverty of the Elderly: The Case of Portugal

  • Paula Cristina Albuquerque ISEG - School of Economics and Management and CISEP
  • Manuela Arcanjo ISEG - School of Economics and Management and SOCIUS
  • Vítor Manuel Escária ISEG - School of Economics and Management and CIRIUS
  • Francisco José Nunes ISEG - School of Economics and Management and UECE (Research Unit on Complexity and Ecoonomics)
  • José António Pereirinha ISEG - School of Economics and Management and CISEP

Abstract

This article discusses whether transition to retirement may be associated with a greater probability of becoming poor. Having recourse to the European Community Household Panel (ECHP) for Portugal, the analysis is focused on a sample of individuals who retired in the period 1994-2001. Longitudinal analysis focuses upon income changes upon entering retirement. We relate the dynamics of household income changes for people who retire to personal and household characteristics. A multivariate probit model of the probability of low income at the time of retirement, conditional on not having a low income prior to retirement, is then put forward.
Published
2011-02-05