The Determinants of Pension Switching: Empirical Evidence for Romania

19 Pages Posted: 13 Feb 2018

See all articles by Ingrid-Mihaela Dragota

Ingrid-Mihaela Dragota

Bucharest University of Economic Studies

Dragos Simona Laura

Babes-Bolyai University - Faculty of Economics and Business Administration

Victor Dragota

Bucharest University of Economic Studies

Date Written: June 7, 2015

Abstract

Currently, in the post-communist Central and East European Countries, an intricate debate regarding the survival of their multi-pillar pension systems is needed.The authorities in the field search for solutions to protect individuals after retirement. Using a self-designed questionnaire and a related national survey conducted in 2010 for the Romanian major urban population, assigned to mandatory private pension funds, we analyse the socio-economic and demographic determinants for the decision to transfer from one fund to another. We find the reputation of the pension fund and the age of the respondents as determinants for the decision to switch the private pension fund in our binary logit model. Younger persons are more susceptible to switch the private pension funds.

Keywords: private pension, pension switching, reputation, socio-demographic variables, Romania

JEL Classification: G23, J32

Suggested Citation

Dragota, Ingrid-Mihaela and Simona Laura, Dragos and Dragota, Victor, The Determinants of Pension Switching: Empirical Evidence for Romania (June 7, 2015). Available at SSRN: https://ssrn.com/abstract=3119574 or http://dx.doi.org/10.2139/ssrn.3119574

Ingrid-Mihaela Dragota (Contact Author)

Bucharest University of Economic Studies ( email )

5-7 Mihail Moxa Street
Bucharest
Romania

Dragos Simona Laura

Babes-Bolyai University - Faculty of Economics and Business Administration ( email )

Str Teodor Mihali, Nr.58-60
Cluj-Napoca, RO- 400591
Romania

Victor Dragota

Bucharest University of Economic Studies ( email )

Piața Romană 6
Bucharest, 010374
Romania

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