| Summary: | 碩士 === 淡江大學 === 經濟學系碩士班 === 102 === This paper investigates the effects that the implementation of the new system of labor pension on household savings in Taiwan. Due to Taiwan''s aging society, it is the most important issue to improve the economic security of the olds. The "New Labor Pension Mechanism" was implemented in 2005 by Council of Labor Affairs. Relative to the previous system, the new system is characterized by the continuation of working seniority and may increase workers’ expectations of their future wealth.
Previous literature has explored the implementation of National Health Insurance Policy on savings, and they found NHI has significant negative effects on savings. This study further suggests that the effects of labor pension reform could greater than the NHI’s effect. We use Difference-in-Difference model to estimate a 12-year sample of "Panel Study of Family Dynamics" in Taiwan. Estimation results show that New Labor Pension Mechanism’s implementation significantly reduces household savings and the effects are higher for lower education level workers.
Explaining by Income elasticity of savings, pension’s wealth effect on those with higher socioeconomic status is relatively small, otherwise, larger. This study supplements the limitation of researches for New Labor Pension Mechanism and could be a reference for Taiwan''s old age security policy.
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