nep-age New Economics Papers
on Economics of Ageing
Issue of 2008‒02‒16
seven papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Preference for early retirement, health and job satisfaction : a European comparison By Didier Blanchet; Thierry Debrand
  2. Age, Occupations, and Opportunities for Older Workers in Germany By Golo Henseke; Thusnelda Tivig
  3. Preferences for Eerly Retirement among Older Government Employees in Egypt By Fatma El-Hamidi; Fatma EL-Hamidi; Cem Baslevent
  4. Public Sector Pensions and the Challenge of an Ageing Public Service By Jonathan Kings; Edouard Turkisch; Nick Manning
  5. Promoting Social Participation for Healthy Ageing - A Counterfactual Analysis from the Survey of Health, Ageing, and Retirement in Europe (SHARE) By Thierry Debrand; Nicolas Sirven
  6. The Retirement of a Consumption Puzzle By Erik Hurst
  7. Aging Workforces and Challenges to Human Resource Management in German Firms By Uschi Backes-Gellner; Stephan Veen

  1. By: Didier Blanchet (INSEE institut national de la statistique et des études économiques); Thierry Debrand (IRDES institut for research and information in health economics)
    Abstract: This work uses the first wave of SHARE to analyze the impact of health and satisfaction at work on preferences concerning age at retirement in 10 European countries. Preferences concerning age at retirement are measured by the rate of people wishing to retire as soon as possible. We examine how health and work conditions contribute to explain differences in these preferences both at the individual level and between countries. At the individual level, the effects that are obtained are consistent with expectations, but they are of little help for explaining international differences. Fixing health and work conditions, we observe a north-south gradient of preferences for early retirement which remains close to the gross cross country differentials. All these results are robust to control by institutional features of pension systems (overall generosity of pension systems) and to control for the selection bias implied by the fact that preferences are only measured on people that are still in employment.
    Keywords: retirement, monetary factor, Health, job satisfaction
    JEL: J28 I10 J26
    Date: 2007–02
  2. By: Golo Henseke (University of Rostock and Rostock Centre for the Study of Demographic Change, Germany); Thusnelda Tivig (University of Rostock and Rostock Centre for the Study of Demographic Change, Germany)
    Abstract: Improvement of the labor market situation for the elderly is a declared target in the EU. In this study we derive a model of occupational age structure, its determinants and their impact on employment and re-employment opportunities for older workers. The empirical analysis is based on data from German microcensus and conducted on the level of occupations. We show firstly that education, skills, training requirements and the compensation structure affect employment and re-employment of workers aged 50 and above, though detailed impact differs by gender. And secondly, working conditions and arrangements exert a clear-cut influence on employment and re-employment at older ages. Our findings suggest that future labor market policies should focus on working conditions and arrangement to improve opportunities for older workers.
    Keywords: labor force aging, employment, re-employment, gender
    JEL: J21 J14 J16
    Date: 2008
  3. By: Fatma El-Hamidi; Fatma EL-Hamidi; Cem Baslevent
    Abstract: . . .
    Date: 2007–02
  4. By: Jonathan Kings; Edouard Turkisch; Nick Manning
    Abstract: The consequences of an ageing workforce are magnified in the public sector because it generally has an older demographic profile than the private sector (OECD, 2006). The challenge of attracting and retaining capacity within the public service as large numbers of experienced public servants retire is set to be a growing concern in many OECD countries. This report looks at the degree to which pension reform may be assisting in meeting this challenge....
    Date: 2007–02
  5. By: Thierry Debrand (IRDES institut for research and information in health economics); Nicolas Sirven (IRDES institut for research and information in health economics)
    Abstract: Promoting social participation of the older population (e.g. membership in voluntary associations) is often seen as a promising strategy for 'healthy ageing' in Europe. Although a growing body of academic literature challenges the idea that the link between social participation and health is well established, some statistical evidence suggest a robust positive relationship may exist for older people. One reason could be that aged people have more time to take part in social activities (due to retirement, fewer familial constraints, etc.); so that such involvement in voluntary associations contributes to maintain network size for social and emotional support; and preserves individuals' cognitive capacities. Using SHARE data for respondents aged fifty and over in 2004, this study proposes to test these hypotheses by evaluating the contribution of social participation to self-reported health (SRH) in eleven European countries. The probability to report good or very good health is calculated for the whole sample (after controlling for age, education, income and household composition) using regression coefficients estimated for individuals who do and for those who do not take part in social activities (with correction for selection bias in these two cases). Counterfactual national levels of SRH are derived from integral computation of cumulative distribution functions of the predicted probability thus obtained. The analysis reveals that social participation contributes by three percentage points to the increase in the share of individuals reporting good or very good health on average. Higher rates of social participation could improve health status and reduce health inequalities within the whole sample and within every country. Our results thus suggest that 'healthy ageing' policies based on social participation promotion may be beneficial for the aged population in Europe.
    Keywords: Healthy ageing, Self-reported health, Social participation, Social capital, SHARE data, Counterfactual analysis, Stochastic dominance
    JEL: I12 Z13
    Date: 2008–01
  6. By: Erik Hurst
    Abstract: This paper summarizes five facts that have emerged from the recent literature on consumption behavior during retirement. Collectively, the recent literature has shown that there is no puzzle with respect to the spending patterns of most households as they transition into retirement. In particular, the literature has shown that there is substantial heterogeneity in spending changes at retirement across consumption categories. The declines in spending during retirement for the average household are limited to the categories of food and work related expenses. Spending in nearly all other categories of non-durable expenditure remains constant or increases. Moreover, even though food spending declines during retirement, actual food intake remains constant. The literature also shows that there is substantial heterogeneity across households in the change in expenditure associated with retirement. Much of this heterogeneity, however, can be explained by households involuntarily retiring due to deteriorating health. Overall, the literature shows that the standard model of lifecycle consumption augmented with home production and uncertain health shocks does well in explaining the consumption patterns of most households as they transition into retirement.
    JEL: D11 E21 J26
    Date: 2008–02
  7. By: Uschi Backes-Gellner (Institute for Strategy and Business Economics, University of Zurich); Stephan Veen (Institute for Strategy and Business Economics, University of Zurich)
    Abstract: The aim of this paper is to provide an overview of the main challenges imposed by demographic change on the human resource management (HRM) policies of German companies. Although many more aspects of business are affected by demographic change, such as changes in consumption or in savings and investment and therefore in capital costs, we concentrate on changes in personnel policies prompted by an aging workforce. We cover a wide range of HRM policies, starting with recruitment problems, moving on to training issues, wages and incentives, and end with problems concerning innovation and technological change.
    Keywords: Aging Workforce, Firm Demography, Human Resource Management
    JEL: M51 M54 J1
    Date: 2007–12

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