nep-age New Economics Papers
on Economics of Ageing
Issue of 2013‒06‒04
twelve papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. The Design and Implementation of Public Pension Systems in Developing Countries: Issues and Options By Bloom, David E.; McKinnon, Roddy
  2. Retirement Incentives and Couples? Labour Supply Decisions By Bernardo Queiroz; Laetícia Rodrigues de Souza
  3. Effects of Social Security Policies on Benefit Claiming, Retirement and Saving By Alan L. Gustman; Thomas L. Steinmeier
  4. Financial sophistication in the older population By Lusardi, Annamaria; Mitchell, Olivia S.; Curto, Vilsa
  5. Harsh occupations, health status and social security By PESTIEAU, Pierre; RACIONERO, Maria
  6. The Course of Subjective Sleep Quality in Middle and Old Adulthood and Its Relation to Physical Health By Sakari Lemola; David Richter
  7. Retirement incentives in Belgium: estimations and simulatins using SAHRE data By alain Jousten; Mathieu Lefebvre
  8. The quality of life of female informal caregivers: from Scandinavia to the Mediterranean Sea By Cinzia Di Novi; Rowena Jacobs; Matteo Migheli
  9. Couple?s Behaviour in the Brazilian Labour Market: the Influence of Social Security and Individual Characteristics on Married Individuals? Labour Supply Decisions By Bernardo Queiroz; Laetícia Rodrigues de Souza
  10. Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers By Hullegie, Patrick; van Ours, Jan C.
  11. Social Care and Well-being. Experiences and Perspectives of an Old-aged Group By São José, José; Barros, Rosanna; Samitca, Sanda; Teixeira, Ana
  12. The Effects of Work Values and Work Centrality on Job Satisfaction. A Study With Older Spanish Workers By Orgambídez-Ramos, Alejandro; Mendoza-Sierra, M. Isabel; Giger, Jean-Christophe

  1. By: Bloom, David E. (Harvard University); McKinnon, Roddy (International Social Security Association)
    Abstract: Developing countries are increasingly aware of the need to design and implement improvements in public systems for providing pensions to the elderly. Such systems may aim to smooth consumption and thus provide reliable income to older people, reduce poverty among the elderly, insure those no longer working against the risk of running out of funds, and promote equal treatment of men and women in retirement security even when lifetime earnings and projected average life expectancy may differ greatly. The increasing share of the elderly in the population of all countries makes implementation of sustainable pension systems both more urgent and more difficult. Planners must consider numerous options in pension system design and choose the combination of policies that will optimize coverage, benefits, and financing given a country's demographics, history, practices regarding family support of the elderly, political system, extent of informal labour, and fiscal situation.
    Keywords: pension systems, aging, retirement, life expectancy
    JEL: J14 J26 J11 J18
    Date: 2013–05
  2. By: Bernardo Queiroz (Cedeplar/UFMG); Laetícia Rodrigues de Souza (IPC-IG)
    Abstract: The Brazilian population has been showing signs of major changes in the past few decades. According to the United Nations, the average age of the population in Brazil is projected to be 47.5 years by 2050, compared to 19.2 years in 1950. The length of working life has fallen over time, due to both increases in educational attainment (thus fewer younger workers) and changes in retirement behaviour (fewer older workers). In addition, it is argued that the rules and regulations of the provision of social security benefits affect older workers? retirement decisions (Wise, 2004). The combination of these three elements increases the concern for the sustainability of public social support programmes for elderly people. (?)
    Keywords: Retirement Incentives and Couples? Labour Supply Decisions
    Date: 2013–04
  3. By: Alan L. Gustman; Thomas L. Steinmeier
    Abstract: An enhanced version of a structural model jointly explains benefit claiming, wealth and retirement, including reversals from states of lesser to greater work. The model includes stochastic returns on assets. Estimated with Health and Retirement Study data, it does a better job of predicting claiming than previous versions. Alternative beliefs about the future of Social Security affect predicted outcomes. Effects of three potential policies are also examined: increasing the early entitlement age, increasing the full retirement age, and eliminating the payroll tax for seniors. Predicted responses to increasing the full entitlement age are sensitive to beliefs.
    JEL: C61 D31 D91 E21 H55 J14 J26 J32
    Date: 2013–05
  4. By: Lusardi, Annamaria; Mitchell, Olivia S.; Curto, Vilsa
    Abstract: This paper examines data on financial sophistication among the U.S. older population, using a special-purpose module implemented in the Health and Retirement Study. We show that financial sophistication is deficient for older respondents (aged 55+). Specifically, many in this group lack a basic grasp of asset pricing, risk diversification, portfolio choice, and investment fees. Subpopulations with particular deficits include women, the least educated, persons over the age of 75, and non-Whites. In view of the fact that people are increasingly being asked to take on responsibility for their own retirement security, such lack of knowledge can have serious implications. --
    Keywords: Financial Knowledge,Older Population,Question Framing,Male and Female Differences,Retirement Security
    JEL: D91 G11
    Date: 2012
  5. By: PESTIEAU, Pierre (CREPP, Université de Liège, Belgium; Université catholique de Louvain, CORE, Belgium); RACIONERO, Maria (Research School of Economics, Australian National University)
    Abstract: We study the optimal design of a social security system when individuals differ in health status and occupation. Health status is private information but is imperfectly correlated with occupation: individuals in harsh occupations are more likely to be in poor health. We explore the desirability of letting the social security policy differ by occupation and compare the results with those obtained when disability tests are used instead. We show that tagging by occupation is preferable to testing when the audit technology is relatively expensive and/or the proportion of disabled workers differs markedly across occupations. We also study the implications of imposing horizontal equity among disabled workers and show that those in the harsh occupation may be induced to retire later.
    Keywords: health status, retirement age, tagging, disability tests
    JEL: H21 H55
    Date: 2013–02–22
  6. By: Sakari Lemola; David Richter
    Abstract: Objective: Older adults more often complain about sleep disturbances compared to younger adults. However, it is not clear whether there is still a decline of sleep quality after age 60 and whether changes in sleep quality in old age are mere reflections of impaired physical health or whether they represent a normative age dependent development. Method: Subjective sleep quality and perceived physical health were assessed in a large representative sample of 14,179 participants (52.7% females; age range 18-85) from the German Socio-Economic Panel Study across 4 yearly measurement time points. Results: Subjective sleep quality linearly declined from young adulthood until age 60. After age 60 a transient increase in subjective sleep quality occurred that coincides with retirement. Physical health prospectively predicted subjective sleep quality and vice versa. These relations were similar for participants above and below age 60. Discussion: Around retirement a transient increase in subjective sleep quality occurs, which may reflect a decrease in work related distress or an increase in flexibility to organize the day according to one¿s circadian preferences. Perceived physical health is important for subjective sleep quality in old adults, but not more important than at younger age.
    Keywords: Sleep quality, Physical health, Old age, Retirement, German Socio-Economic Panel Study
    Date: 2012
  7. By: alain Jousten; Mathieu Lefebvre
    Abstract: The paper studies retirement behavior of wage-earners in Belgium for the first time using rich survey data to explore retirement incentives as faced by individuals. Specifically, we use SHARE data to estimate a model à la Stock and Wise (1990). Exploring the longitudinal nature of SHARELIFE, we construct measures of financial and non financial incentive. Our analysis explicitly takes into account the different take up rates of the various early retirement exit paths across time and ages. The results show that financial incentives play a strong role. Health and education also matter, as does regional variation though the latter in an unexpected way. A set of policy simulations illustrate the scope and also the limits associated with selective parametric reforms
    Date: 2013
  8. By: Cinzia Di Novi (Dipartimento di Economia, Università Ca' Foscari, Venezia, Italy); Rowena Jacobs (Centre for Health Economics, University of York, UK); Matteo Migheli (Dipartimento di Economia "S. Cognetti De Martiis", Università di Torino, Italy)
    Abstract: We analyse the impact of the provision of care on the health and quality of life (QoL) of mature female informal caregivers using a representative sample drawn from the Survey of Health, Ageing and Retirement in Europe (SHARE). We match each informal caregiver with a non-carer using Propensity Score matching and test whether matched individuals differ on self-assessed health and a functional indicator of QoL and whether this relationship differs across European regions. We find a North-South gradient both for self-assessed health and QoL and our results show that the provision of caregiving to close relatives in Europe impacts on the caregivers’ quality of life and health in a way that depends on their geographical location, the degree of formal care and specific cultural and social factors of the area. We find that informal caregiving is a complex phenomenon which may bring both psychological rewards and distress to providers of care and this complexity, along with the geographical gradient highlight the importance of ensuring that policies match the needs of individual carers in their own geographical areas and cultural contexts.
    Keywords: informal caregiving; quality of life; self-assessed health; Europe
    JEL: I10 I12 D10
    Date: 2013–05
  9. By: Bernardo Queiroz (Cedeplar/UFMG); Laetícia Rodrigues de Souza (IPC-IG)
    Abstract: In recent years, a large number of studies have investigated the relationship between social security benefits and male retirement decisions in developed countries. However, women?s and couples? labour supply decisions and the patterns of withdrawal from the labour force in emerging economies are much less studied. This paper uses Brazilian data from 1998 to 2008 to examine how social security financial incentives and personal characteristics affects one?s own and spouses? retirement decisions. Our results suggested that couples synchronize retirement and that they respond similarly to their own characteristics. We also find that wives are more responsive to husbands? incentives than vice-versa. (?)
    Keywords: Couple?s Behaviour in the Brazilian Labour Market: the Influence of Social Security and Individual Characteristics on Married Individuals? Labour Supp
    Date: 2013–04
  10. By: Hullegie, Patrick (VU University Amsterdam); van Ours, Jan C. (Tilburg University)
    Abstract: Unemployment insurance recipients in the Netherlands were for a long time exempted from the requirement to actively search for a job when they reached the age of 57.5. We study how this exemption affected the job finding rates of the recipients involved. We find evidence that the job finding rate of unemployed workers who were getting close to the age of 57.5 is reduced in anticipation of the removal of the search requirement. In addition we find a large negative effect on job finding rates of the actual removal of the search requirement. Apparently, even for persons with seemingly poor job prospects search requirements have a positive effect on finding rates.
    Keywords: eligibility criteria, unemployment benefits, job finding, older workers
    JEL: C41 H55 J64 J65
    Date: 2013–05
  11. By: São José, José (University of Algarve); Barros, Rosanna (University of Algarve); Samitca, Sanda (University of Lisbon); Teixeira, Ana (University of Algarve)
    Abstract: This paper intends to undertake an initial/preliminary exploration of the subjective well-being regarding the reception of social care and other domains of life in a group of older people. It is, therefore, a descriptive paper that raises more questions than offers answers. Data was collected in the scope of a larger qualitative research project through the conduction of a focus group with elders receiving some kind of social care. The collected data was analysed according to the basic procedures of Grounded Theory with the help of the software NVivo 9. The results reveal different sources of well-being and ill-being. The former are satisfaction with the social care services, satisfaction with the daily life, and satisfaction with living arrangements. In turn, the latter are dissatisfaction with the Day Care Centre, dissatisfaction with the daily life, dissatisfaction with living arrangements, and transition to widowhood. These results and their implications for social policy and professional practice are discussed in the context of existing literature.
    Keywords: Subjective Well-being; Older People; Social Care; Social Policy
    JEL: I31
    Date: 2013–05–23
  12. By: Orgambídez-Ramos, Alejandro (University of Algarve); Mendoza-Sierra, M. Isabel (University of Huelva); Giger, Jean-Christophe (University of Algarve)
    Abstract: Since workforces are ageing throughout Europe, interest in the role of age in the workplace is increasing. Older workers with high work centrality are more likely to negotiate a relational contract and express higher levels of job satisfaction than older workers with low work centrality (Armstrong-Stassen and Schlosser, 2008). This study examines the role of work centrality and valued work outcomes as antecedents of job satisfaction. A cross sectional study using questionnaires was conducted. The sample consisted of 203 Spanish employees (Mage = 55.78, SD = 3.01). Hierarchical multiple regression analyses have revealed that job satisfaction was significantly predicted by needed income and work centrality. When work is not an important part of older workers’ lives, they will prefer extrinsic outcomes and will not invest in the relationship with their organization (Grant & Wade-Benzoni, 2009). Implications for research and theory are explored in the conclusion.
    Keywords: Job Satisfaction; Work Values; Ageism; Work Centrality
    JEL: I10
    Date: 2013–05–23

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