nep-age New Economics Papers
on Economics of Ageing
Issue of 2013‒09‒28
five papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Flexible pension take-up in social security By Jan Bonenkamp; Yvonne Adema; Lex Meijdam
  2. DYPES: A Microsimulation model for the Spanish retirement pension system By F. J. Fernández-Díaz; C. Patxot; G. Souto
  3. Healthy, wealthy, wise, and happy? An exploratory analysis of the interplay between aging and subjective well-being in low and middle income countries By Gabriela Flores; Michael Ingenhaag; Jürgen Maurer
  4. The effect of firms' partial retirement policies on the labour market outcomes of their employees By Huber, Martin; Lechner, Michael; Wunsch, Conny
  5. The Heterogeneous Effects of Workforce Diversity on Productivity, Wages and Profits By Garnero, Andrea; Kampelmann, Stephan; Rycx, François

  1. By: Jan Bonenkamp; Yvonne Adema; Lex Meijdam
    Abstract: This paper studies the redistribution and welfare effects of increasing the flexibility of individual pension take-up. We use an overlapping-generations model with Beveridgean pay-as-you-go pensions, where individuals differ in ability and life span. We find that introducing flexible pension take-up can induce a Pareto improvement when the initial pension scheme contains within-cohort redistribution and induces early retirement. Such a Pareto-improving reform entails the application of uniform actuarial adjustment of pension entitlements based on average life expectancy. Introducing actuarial non-neutrality that stimulates later retirement further improves such a flexibility reform.
    JEL: H55 H23 J26
    Date: 2013–09
  2. By: F. J. Fernández-Díaz; C. Patxot; G. Souto
    Abstract: This paper presents the results of DyPeS, the first dynamic microsimulation model of the retirement pensions system applied to the Spanish case. The simulation of the reform approved in 2011 shows that only the delay in retirement age (from 65 to 67) would have a significant effect on pension expenditure, while other measures changing the computation of the initial pension for new retirees have a limited impact. Paradoxically, it is found that the consideration of more contribution years in the computation of the initial pension amount, despite fostering the Bismarckian nature of the system, has a positive impact on redistribution.
    Date: 2013–09
  3. By: Gabriela Flores; Michael Ingenhaag; Jürgen Maurer
    Abstract: In this paper, we address the relationship between age and several dimension of subjective well-being. Whilst literature generally finds a U-shaped age-profile in subjective well-being, this age-pattern might only hold after controlling for objective life circumstances. The observed U-shaped age-profile might further not generalize to other dimensions of well-being and might vary across countries and cultures. Our study examines the relationship between age and several dimensions of well-being as well as the effect of objective life circumstances using the WHO Study on Global AGEing and Adult Health (SAGE). Our results suggest a decreasing age profile in the raw data associated with evaluative well-being, while experienced well-being shows a rather flat or slightly increasing pattern. However, age per se is not a cause of a decline in evaluative well-being. The negative age-profile in evaluative well-being is mainly explained by changes in life circumstances associated with aging. Controlling for socio-demographic factors, we find higher levels of well-being for older persons relative to their middle-aged counterparts. In contrast, we find that changes in life circumstances have a much smaller effect on experienced well-being.
    Keywords: Aging; Subjective Well-being; Low and middle income countries
    JEL: I31 J14
    Date: 2013–09
  4. By: Huber, Martin; Lechner, Michael; Wunsch, Conny
    Abstract: In this paper, we assess the impact of firms introducing part-time work schemes for gradual labour market exit of elderly workers on their employees’ labour market outcomes. The analysis is based on unique linked employer-employee data that combine high-quality survey and administrative data. Our results suggest that partial or gradual retirement options offered by firms are an important tool to alleviate the negative effects of low labour market attachment of elderly workers in ageing societies. When combined with financial incentives to hire unemployed or young jobseekers as replacement, they seem to be particularly beneficial, especially when labour market conditions are difficult. Under such circumstances, they can even have positive spill-over effects on younger workers. Firms should thus be encouraged to offer such schemes.
    Keywords: elderly employees; matching; part-time work; treatment effects
    JEL: C21 J14 J26
    Date: 2013–07
  5. By: Garnero, Andrea; Kampelmann, Stephan; Rycx, François
    Abstract: We estimate the impact of workforce diversity on productivity, wages and productivity-wage gaps (i.e. profits) using detailed Belgian linked employer-employee panel data. Findings show that educational (age) diversity is beneficial (harmful) for firm productivity and wages. While gender diversity is found to generate significant gains in high-tech/knowledge intensive sectors, the opposite result is obtained in more traditional industries. Estimates neither vary substantially with firm size nor point to sizeable productivity-wage gaps except for age diversity.
    Keywords: labour diversity; productivity; wages; linked panel data; GMM
    JEL: D24 J24 J31 M12
    Date: 2013–09

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