nep-age New Economics Papers
on Economics of Ageing
Issue of 2013‒10‒11
five papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Age-dependent Taxation, Retirement Behavior, and Work Hours Over the Life Cycle By Julian Diaz Saavedra
  2. The ex-ante effects of non-contributory pensions in Colombia and Peru By Javier Olivera; Blanca Zuluaga
  3. Un Test sulle Ipotesi delle Proiezioni a medio-lungo termine della Spesa Sanitaria By Salerno, Nicola Carmine
  4. Delegating home care for the elderly to external caregivers? An empirical study on Italian data By M. Lippi Bruni; C. Ugolini
  5. Absent With Leave: The Implications of Demographic Change for Worker Absenteeism By Finn Poschmann; Omar Chatur

  1. By: Julian Diaz Saavedra (Department of Economic Theory and Economic History, University of Granada.)
    Abstract: We use a computable overlapping generations model economy, which matches the stylized facts con- cerning retirement behavior, to analyze the consequences of three reforms designed to reduce tax rates on the labor supply of older workers. We nd that these reforms increase the participation rates of the elderly and show that the gains, in terms of old age work hours, are non-trivial. However, we also nd that the total labor supply response to the reforms is not so much an increase in total lifetime hours as it is a reallocation of hours over the life cycle. Finally, we show that these reforms, designed to increase the length of the working life of individuals, may not increase output.
    Keywords: Computable general equilibrium, labor supply, retirement, age-dependent taxation.
    JEL: C68 J22 J26 H31
    Date: 2013–09–25
  2. By: Javier Olivera (University College Dublin, Geary Institute and PEARL Institute for Research on Social Inequality, University of Luxembourg); Blanca Zuluaga (Department of Economics, Icesi University)
    Abstract: The aim of this paper is to study the ex-ante effects of the implementation of a Non Contributory Pension (NCP) program in Colombia and Peru. Relying on household survey data, we simulate the potential impact of the transfer on poverty, inequality, fiscal cost, and the probability of affiliation to the contributory pension system. This last effect is the most direct behavioral effect one can expect from the implementation of a NCP scheme. For the behavioral response we estimate a Nested Logit Model. Our results show that a NCP in Colombia and Peru contributes to the reduction of poverty and inequality among the elderly, particularly in rural areas at affordable fiscal costs. Furthermore, there is not a large impact on the probability of affiliation to contributory pensions when the program is targeted to the poor (and extreme poor), with the exception of Peruvian women for whom there is always a sizeable reduction on their probability of affiliation to the contributory pension system.
    Keywords: Non-contributory pensions, social security, old-age, poverty.
    JEL: D30 I32 I38 J14 J26
    Date: 2013–08
  3. By: Salerno, Nicola Carmine
    Abstract: The same methodology Oecd and Ecofin apply to project future trends of health care expenditue is here applied to reconstruct backwards Italian health care expenditure. The time horizon is 1988-2012. Results are described and argued. Important evidence emerges on the historical value of the elasticity of per-capita expenditure to per-capita Gdp. This value, of course, brings also some information on what this elasticity can prove in the future. It is the first test developed on past trends using profiles of per-capita expenditure per age brackets, and applied to Italy.
    Keywords: health care, projections, halth care projections, medium-long term, Oecd, Awg, Ecofin, Imf, International Monetary Fund, Ageing Working Group, Ageing Report, European Commission, sustainability, public finances, elasticity, Gdp, per-capita expenditue, per-capita Gdp, historical trends, welfare system, pay-as-you-go, age brackets, Europan Economy, Italy, nicola c. alerno, nicola salerno, nc salerno, salerno nc,, nicolacsalerno
    JEL: H00 H4 H40 H5 H51 H54 I0 I00 I1 I10 I18 I31 J1 J11 J14
    Date: 2013–10–05
  4. By: M. Lippi Bruni; C. Ugolini
    Abstract: We study care arrangement decisions in Italy, where families are increasingly delegating the role of primary caregiver to external (paid) people also for the provision of home care. We consider a sample of households with a dependent elderly person cared for either at home or in a residential home, extracted from a survey representative of the population of Italy’s Emilia-Romagna region. We investigate the determinants of a household’s decision to opt for one of the following three alternatives: the institutionalisation of elderly family members, informal home care, or paid home care. We estimate two model specifications, based on a simultaneous and a sequential decision process respectively, the results of which are fairly consistent. Disability related variables, rather than family characteristics, emerge as the main determinants of institutionalisation. On the other hand, household characteristics and socio-economic variables are more influential when it comes to choosing between informal and formal home care provisions.
    JEL: C21 D13 I18
    Date: 2013–10
  5. By: Finn Poschmann (C.D. Howe Institute); Omar Chatur (C.D. Howe Institute)
    Abstract: Over the past 30 years, sick days have risen in Canada’s workforce, overall, raising important questions about why days lost owing to reported illness are climbing, and how demographic and institutional change may have affected reported rates and may do so in the future. The data show striking differences in absentee-rate trends based on age, sex, and union status. Days lost owing to illness vary across age groups: as the demographic weight of Canada’s population shifts from younger to older categories, reported days lost rise. Absence rates for female versus male workers of all ages and types have diverged over the course of the last few decades, with females taking more days off and men’s rate showing little change. Public-sector employees report more workplace absences than do private-sector employees. Workers in unionized settings take more sick leave days than those in non-union settings. Workplaces and government practices and policies must adjust to these realities, through a combination of accommodation, flexibility and planning.
    Keywords: Social Policy, Labour Markets
    JEL: J21

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