nep-age New Economics Papers
on Economics of Ageing
Issue of 2007‒04‒21
eight papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. ‘Voluntary’ and ‘Involuntary’ Early Retirement: An International Analysis By David Dorn; Alfonso Sousa-Poza
  2. The companies of participation before the challenge of the management of the demographic change By Martín López, Sonia
  3. Recruitment and Job Applications of Older Jobseekers from the Establishments’ Perspective By Lutz Bellmann; Martin Brussig
  4. Telework as a Solution for Senior Workforce: Research at Tallinn University of Technology By René Arvola
  5. Intergenerational Risk-Sharing and Risk-Taking of a Pension Fund By GOLLIER, Christian
  6. Economic analysis of Tai Chi as a means of preventing falls and falls related injuries among older adults, CHERE Working Paper 2006/4 By Marion Haas
  7. A Synthesis of Findings from the Study of Affordable Housing plus Services for Low- and Modest-Income Older Adults By Mary F. Harahan; Alisha Sanders, M.P.Aff.; Robyn Stone, Dr.P.H.
  8. How Does the Presence of Children Affect Dependent Care? A Psycho-Economic Approach By José Ignacio Giménez; Miriam Marcén; José Alberto Molina

  1. By: David Dorn (University of St. Gallen); Alfonso Sousa-Poza (University of Hohenheim, University of St. Gallen and IZA)
    Abstract: Recent literature makes a distinction between 'voluntary' and 'involuntary' early retirement, where 'involuntary' early retirement results from employment constraints rather than from a preference for leisure relative to work. This paper analyzes 'voluntary' and 'involuntary' early retirement based on international microdata covering 19 industrialized countries. The results show that 'involuntary' early retirement is particularly widespread in Continental Europe. Countries facing economic recessions and having strict employment protection legislation have higher shares of 'involuntary' retirements among early retirees. Generous early retirement provisions of the social security system do not only make 'voluntary' early retirement more attractive for individuals, but also induce firms to push more employees into early retirement.
    Keywords: early retirement, involuntary early retirement, social security, pensions
    JEL: J14 J21 J22 J26
    Date: 2007–03
  2. By: Martín López, Sonia
    Abstract: The demographic change that is lived worldwide, and of particular form in Europe, as consequence of the aging of the population because of the increase of the life expectancy and the drastic reduction of the rates of fertility, has made jump the alarms because of the need to get a suitable management that does not put in danger the financial viability of the social protection systems. The members states have to make the necessary reforms that they lead to the modernization of their social protection systems guaranteeing both suitable and viable pensions and a sanitary assistance and an assistance of long duration of quality, accessible and lasting. To achieve these aims there is a widespread agreement to foment employment policies that stimulate the active aging and the prolongation of the professional life to stop the premature exit of the labour market of the 45-year-old major workers. Among the measurements to adopt for the maintenance of the workers in the companies there are the adjustment of the contents of the working places, the use of the internal knowledge and the permanent training of the workers. In the cases in which already there has been produced the expulsion of the labour market, the participation companies will can represent an exit of the situation of unemployment. But in order that the unemployed ones of major age decide to tackle their own managerial initiative they need formation, advice and helps.
    Keywords: Aging population; systems social protection; adjustment of the contents of the working places; workers of major age; cooperative societies; employee-owned companies
    JEL: P13 J54 E24 H55
    Date: 2006
  3. By: Lutz Bellmann (IAB Nuremberg, University of Hannover and IZA); Martin Brussig (IAQ, University of Duisburg-Essen)
    Abstract: In the demographic change, a prolongation of individual employment and thus of beginning a new employment in later stages of the work life is of growing importance. On the base of microeconomic data (establishment panel of the IAB), this paper analyses firms’ characteristics correlating with their recruitment behaviour towards the elderly (age 50 and more). Special consideration is given to the labour supply, which is here observed as the existence of an application from job seekers of age 50 and more, and which is a condition for recruiting of older employees. The results show that about 75% of the firms did not have an application of older job seekers. Of the remaining firms, which reported to have applications from older job seekers, about half of the firms recruited older job seekers, and the other half did not so. However, there are remarkable differences between firms which received applications from older job seekers and firms which are willing to recruit older job candidates. Possible explanations point to the search behaviour of job seekers as well as to the signalling of firms on the labour market towards the elderly.
    Keywords: economics for the elderly, labour supply, labour demand, vacancies
    JEL: J14 J22 J23 J63
    Date: 2007–03
  4. By: René Arvola (Tallinn University of Technology, School of Economics and Business Administration)
    Abstract: Average life span in Europe has increased by more than average pension age. Most of the pension age people have preserved their work ability. This has raised the percentage of younger pensioners compared to the working population. In many countries young people are in a situation where they have to or want to postpone their employment. This phenomenon leads to difficulties in paying pensions. Scientists in many countries are looking for ways to increase the employment in senior workforce. One of the solutions can be teleworking. Telework has become almost a normal part of white-collar workers’ work style. Telework can also provide better working conditions for people with disabilities and young mothers to increase their employment and help them feel useful in society. Telework has not been scientifically widely studied and results of previous research vary.
    Keywords: telework, flexible work, work style, work environment, senior workforce
    JEL: J14 J81 M2
    Date: 2006
  5. By: GOLLIER, Christian
    Date: 2007–01
  6. By: Marion Haas (CHERE, University of Technology, Sydney)
    Abstract: This study has examined the costs and consequences of a randomised controlled trial of a community based Tai Chi program for people over 60 years of age. The hypothesis for the trial was that compared to non-participants, participants in the Tai Chi program would have fewer falls and may experience additional health and other benefits. In terms of resource use it was anticipated that the Tai Chi program would use additional resources in terms of running costs but was expected to save resources as a result of falls prevented. Data for this economic evaluation were collected prospectively alongside the randomised controlled trial. The aim of this evaluation was to investigate the cost-effectiveness of Tai Chi as means of preventing falls in elderly people living in the community. Costs included were those of the Tai Chi trial and health service utilisation (including GP and specialist and other consultations, tests, hospitalisations and medications). Effectiveness was measured as the number of participants in the intervention and control groups, all participants and the number of falls avoided. SPSS was used to analyse the data; Fisher?s exact and the student?s t-test were used to test differences between the intervention and control groups. From the perspective of NSW Health, the cost of providing Tai Chi as part of this trial ($81232) outweighed any costs of health service provision ($24795). Only a small proportion used health services and this mostly involved the use of over-the-counter pain relieving medication and GP consultations. Only 3 people were admitted to hospital. There were no significant differences between the study and control groups in terms of utilisation and costs except in terms of overall costs where the control group costs were significantly more than the study group (p=0.43). However, this difference was driven by the cost of one admission to hospital. In the trial 3/216 falls resulted in hospitalisation. This means that for every 100 falls avoided, 1.4 serious falls were prevented. Assuming that Tai Chi would continue to prevent falls at the same rate as the trial, 740 individuals would need to participate in Tai Chi to avoid 100 falls and 1.4 serious falls. The value of avoiding a small number of serious falls must be weighed against the high cost of treating and managing the consequences of such falls.
    Keywords: Tai chi, economic aspects, Australia
    JEL: I19
  7. By: Mary F. Harahan; Alisha Sanders, M.P.Aff.; Robyn Stone, Dr.P.H.
    Abstract: With the relationship between increasing age, chronic illness and disability, and growing long-term care needs well documented, new models of delivering health-related and supportive services are being sought that are attractive and affordable to low- and modest-income older adults. One promising but underexplored strategy, affordable housing plus services (AHPS), links older residents of subsidized multiunit housing to health and supportive services so that they can "age in place." The U.S. Departments of Health and Human Services (HHS) and Housing and Urban Development (HUD) and the A.M. McGregor Home in Cleveland, Ohio, funded the Institute for the Future of Aging Services (IFAS), the policy and applied research arm of the American Association of Homes and Services for the Aging (AAHSA), to examine the potential of AHPS strategies for meeting long-term care needs of low- and modest-income seniors.
    JEL: I31
    Date: 2006–08
  8. By: José Ignacio Giménez (University of Zaragoza); Miriam Marcén (University of Zaragoza); José Alberto Molina (University of Zaragoza and IZA)
    Abstract: This paper adopts a psycho-economic approach, based on the "Demonstration Effect" hypothesis, to analyze the effects that the presence of children has on the time devoted to elder care. We combine the approach of the Social Cognitive Theory and a three-generation altruism model. Using the 2003 Spanish Time Use Survey (STUS), we confirm the "Demonstration Effect", i.e, the presence of children, while parents are engaged in elder care activities, increases by 11.63% the time devoted to these activities. Additionally, we find that time devoted to child care as primary activity increases by 11.19 minutes per day when children are present during adult care activities.
    Keywords: children, dependent care, psycho-economic approach, demonstration effect
    JEL: D13 D64 J13 J14
    Date: 2007–04

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