nep-age New Economics Papers
on Economics of Ageing
Issue of 2007‒04‒14
five papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Do hiring subsidies reduce unemployment among the elderly? : Evidence from two natural experiments By Boockmann, Bernhard; Zwick, Thomas; Ammermüller, Andreas; Maier, Michael
  2. Informal and Formal Care among Single-living Elderly in Europe By K. Bolin; B. Lindgren; P. Lundborg
  3. Sick of work or too sick to work? Evidence on health shocks and early retirement from the BHPS By Nigel Rice; Jennifer Roberts; Andrew M. Jones
  4. Determinants of Occupational Pension Provision in Germany By Kathrin Dummann
  5. Demographic Dividend or Demographic Threat in Pakistan By Durr-e-Nayab

  1. By: Boockmann, Bernhard; Zwick, Thomas; Ammermüller, Andreas; Maier, Michael
    Abstract: We estimate the effects of hiring subsidies for older workers on transitions from unemployment to employment in Germany. Using a natural experiment, our first set of estimates is based on a legal change extending the group of eligible unemployed persons. A subsequent legal change in the opposite direction is used to validate these results. Our data cover the population of unemployed jobseekers in Germany and was specifically made available for our purposes from administrative data. Consistent support for an employment effect of hiring subsidies can only be found for women in East Germany. Concerning other population groups, firms´ hiring behavior is hardly influenced by the program and hiring subsidies mainly lead to deadweight effects.
    Keywords: Hiring subsidies, older workers, evaluation, natural experiments
    JEL: C31 H24 J64
    Date: 2007
  2. By: K. Bolin (Lund University Centre for Health Economics, Lund, Sweden); B. Lindgren (Lund University Centre for Health Economics, Lund, Sweden); P. Lundborg (Lund University Centre for Health Economics, Lund, Sweden, Vrije Universiteit Amsterdam, and NETSPAR)
    Abstract: The aims of this study were (1) to analyse whether informal care, provided by children or grandchildren to their elderly parents, and formal care are substitutes or complements, and (2) whether this relationship differs across Europe. The analyses were based on the newly developed SHARE (Survey of Health, Age, and Retirement in Europe) database. We found (1) that informal- and formal home care are substitutes, while informal care is a complement to doctor- and hospital visits, and (2) that these relationships in some cases differ according to a north-south gradient.
    JEL: I11 I12 J22
    Date: 2007–03–22
  3. By: Nigel Rice; Jennifer Roberts (Department of Economics, The University of Sheffield); Andrew M. Jones
    Abstract: We follow individuals as they retire using discrete-time hazard models applied to a stock sample from 12 waves of the British Household Panel Survey. Results confirm that health shocks are a determinant of retirement age and are quantitatively more important than pension entitlement. This is the case for both men and women and is observed for both a measure of health limitations and a measure of latent health status obtained from a generalized ordered probit model. Further, our results provide evidence that, for women, the health status of their partner impacts on their retirement decisions; an effect that is not evident for men.
    Keywords: Health, Retirement, Discrete-time duration models
    JEL: H55 I12 J26
    Date: 2007–01
  4. By: Kathrin Dummann (University of Rostock)
    Abstract: Demographic change causes an undersupply of financial old age benefits within the statutory pay-as-you-go pension system in Germany. Therefore, the provision of occupational as well as private pensions has to be enhanced. However, there seems to be an undersupply of occupational pension provision particularly in small and medium sized enterprises (SMEs). Using survey data of the German Socio-Economic Panel (GSOEP) and the German SAVE survey, the present paper studies econometrically the determinants of occupational pension provision in Germany. It shows that occupational pensions depend not only on supply-side factors such as firm size and industry, but also on demand-side factors such as individual socio- demographic attributes and people's savings motives.
    Keywords: Occupational Pensions, Retirement Provision, Demographic Change, SMEs
    JEL: C25 G23 J14
    Date: 2007
  5. By: Durr-e-Nayab (Pakistan Institute of Development Economics, Islamabad)
    Abstract: Population growth and size have remained the focus of debate for centuries but the recent demographic transition in developing countries has made social scientists take note of the changing age structure of the population as well. As a result of declining population growth and consequent changes in age structure, the proportion of working-age population is increasing in most developing countries, with an associated decline in the dependent age population, offering a window of opportunity to these countries that is referred to as the “demographic dividend”. Pakistan is also going through the demographic transition, and is experiencing a once-in-a-lifetime demographic dividend as the working-age population bulges and the dependency ratio declines. This paper looks into the demographic dividend available to Pakistan and its implications for the country, mainly through three mechanisms: labour supply, savings, and human capital. For economic benefits to materialise, there is a need for policies dealing with education, public health, and those that promote labour market flexibility and provide incentives for investment and savings. On the contrary, if appropriate policies are not formulated, the demographic dividend might in fact be a cost, leading to unemployment and an unbearable strain on education, health, and old age security
    Keywords: Demographic dividend, age-structure, demographic transition, Pakistan
    JEL: J11
    Date: 2006

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