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A stochastic model for pensionable service. (English) Zbl 0759.62027

Independently of the extensive research and models of labor economists, the authors model, via a renewal equation and accounting for periods of unemployment, the total length of working life that qualifies for determining pension benefits. Flowing from the model are expressions for the mean of the pensionable service and the first passage time to vested pensionable service. The applications shown, of exponentially distributed employment and interemployment periods, remind one of the model’s restricting assumptions of the stationarity of these distributions.
Reviewer: G.Lord (Princeton)

MSC:

62P05 Applications of statistics to actuarial sciences and financial mathematics
60K10 Applications of renewal theory (reliability, demand theory, etc.)
91B40 Labor market, contracts (MSC2010)
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References:

[1] Allen E. T., Pension planning (1976)
[2] DOI: 10.1287/mnsc.22.10.1138 · Zbl 0325.65057 · doi:10.1287/mnsc.22.10.1138
[3] Diamond D., Decoupling the social security benefit structure (1976)
[4] Kohlas J., Stochastic methods of operations research (1982) · Zbl 0505.90022
[5] DOI: 10.1093/comjnl/21.3.270 · doi:10.1093/comjnl/21.3.270
[6] McConaloque D. J., Commun. Statist. B1O pp 265– (1981)
[7] Winklevoss H. E., Pension mathematics with Numerical Illustrations (1977)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.