nep-age New Economics Papers
on Economics of Ageing
Issue of 2007‒12‒15
four papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. The aging workforce: Perceptions of career ending By Buyens, D.; Van Dijk, H.; Dewilde, T.; Vlaminckx, A.; De Vos, A.
  2. Work history and the access to contributory pensions. The case of Uruguay. By Marisa Bucheli; Alvaro Forteza; Ianina Rossi
  3. Population Ageing, Taxation, Pensions and Health Costs By Patricia Apps; Ray Rees; Margi Wood
  4. Aging and Structural Change By Ulrich Thießen

  1. By: Buyens, D.; Van Dijk, H.; Dewilde, T.; Vlaminckx, A.; De Vos, A. (Vlerick Leuven Gent Management School)
    Abstract: Purpose - The purpose of this study is twofold. The first is to relate the negative image of older workers to stereotype threat and propose that effective retention management should start with the replacement of this negative image. The second is to assess the needs, perceptions and preferences of older workers regarding their career-ending. Design/methodology/approach - 266 employer questionnaires and 1290 older worker questionnaires identified the employers’ perceptions of older workers and the career-ending needs and preferences of older workers. Findings - The results provide indirect support for the hypothesis that the negative image of older workers forms a self-fulfilling prophecy due to mechanisms of stereotype threat. Furthermore, the results indicate that job involvement plays a crucial role in the preference to retire or keep on working. Research limitations/implications – Stereotype threat promises to be of significant relevance for the career-ending measures of older workers. However, the empirical design of the study limits the possibility to draw direct inferences about the effects of stereotype threat on older workers. Practical implications - Measures and policies aimed at prolonging the participation of older workers at the labor market should be tailored to the specific needs, perceptions and preferences of older workers. Originality/value – The concept of stereotype threat has never been connected with popular perceptions of older workers. Further, the assessment of the needs, perceptions and preferences related to the career-ending of older workers has never been done in European studies.
    Keywords: Retention management, Stereotype threat, Older workers
    Date: 2007–11–26
  2. By: Marisa Bucheli (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Alvaro Forteza (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Ianina Rossi (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
    Abstract: Incomplete and highly fragmented work histories threaten to leave many contributors of the pension schemes in Latin America without the minimum pension guarantee or even without access to the ordinary pension. We propose a methodology to assess this risk, identify vulnerable groups and study potential determinants of the history of contributions using information from the work history records of the social security institutions. We apply this methodology to the largest social security institution of Uruguay, the Banco de Previsión Social, and show that the majority of contributors to this institution might not comply with the minimum number of years of contribution that is currently required to access an ordinary pension when they reach the retirement age.
    Keywords: density of contributions, work history
    JEL: H55 J14 J26
    Date: 2007–10
  3. By: Patricia Apps; Ray Rees; Margi Wood
    Abstract: This paper argues against the policy position that begins with a doomsday scenario of publicly provided health insurance and pension systems threatened with collapse under the stresses imposed by population ageing, and instead contends that the threat of crisis in these systems is policy driven. The central thesis of the paper is that a range of policies lead to the creation of an ageing crisis by inhibiting the efficient reallocation of female labour from the home to the market in response to the decline in fertility. The analysis focuses on family support policies that create large effective tax burdens on female labour supply, by means testing the support on family income, or selectively on the second income. Examples include Family Tax Benefit Part A and Part B, the Medicare Levy and the Medicare Safety Net. The analysis draws on household survey data to show that female labour supply is strongly positively associated with household saving, the purchase of private health insurance and spending on family health generally. Policies that inhibit female labour supply therefore have the effect of reducing the tax base for funding public pensions and health care, while simultaneously reducing the capacity of families to fund them privately.
    Keywords: life cycle, health costs, pensions, household taxation
    JEL: D19 I18 J26
    Date: 2007–11
  4. By: Ulrich Thießen
    Abstract: Many studies analyzed in depth how aging affects aggregate economic performance. But analyses of these effects on the employment structure are scarce and they do not consider that consumption patterns, the supply of goods and services, and also sectoral labor productivity are all likely to adjust to aging and will change. Hence, regression analysis of sectoral employment shares is proposed that controls for aging. For a large panel of countries and a long time period it is found that aging indeed affects relative employment of most sectors statistically highly significant either positive or negative. We also conclude that aging tends to accelerate ongoing structural change. This enables to derive specific policy implications. The approach could thus become a new method in forecasting employment and other effects of aging.
    Keywords: Aging, structural change, panel regressions
    JEL: J11 O57 C33
    Date: 2007

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