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on Economics of Ageing |
| By: | Hospido, Laura (Bank of Spain); Zamarro, Gema (University of Southern California) |
| Abstract: | In this paper we study the retirement patterns of couples in a multi-country setting using data from the Survey of Health, Aging and Retirement in Europe. In particular we test whether women's (men's) transitions out of the labor force are directly related to the actual realization of their husbands' (wives') transition, using the institutional variation in country-specific early and full statutory retirement ages to instrument the latter. Exploiting the discontinuities in retirement behavior across countries, we find a significative joint retirement effect for women of 21 percentage points. For men, the estimated effect is insignificant. Our empirical strategy allows us to give a causal interpretation to the effect we estimate. In addition, this effect has important implications for policy analysis. |
| Keywords: | joint retirement, social security incentives |
| JEL: | J26 D10 C21 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7926&r=age |
| By: | Ai Nakano (Graduate School of Economics, Kobe Universityy) |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1403&r=age |
| By: | Ehrlich, Isaac (University at Buffalo, SUNY); Yin, Yong (University at Buffalo, SUNY) |
| Abstract: | The apparently unrelenting growth in the GDP-share of health spending (SHS) has been a perennial issue of policy concern. Does an equilibrium limit exist? The issue has been left open in recent dynamic models which take income growth and population aging as given. We view these variables as endogenously determined within an overlapping-generations, human-capital-based endogenous-growth model, where a representative parent makes all life-cycle consumption and investment decisions, and life and health protection are subject to diminishing returns. Our prototype model, allowing for both quantity and quality of life as desired goods, yields equilibrium upper bounds for SHS. Our calibrated simulations also account for observed trends in reproductive choices, population aging, life expectancy, and economic growth. The analysis offers new insights about factors that drive long-term trends in aging and health spending and establishes a direct relation between health investments at young age and the equilibrium, steady-state rate of economic growth. |
| Keywords: | endogenous growth, population aging, human capital, health spending, life protection, life expectancy |
| JEL: | I1 I15 O4 E24 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7928&r=age |
| By: | Fanny A. Kluge (Max Planck Institute for Demographic Research, Rostock, Germany); Emilio Zagheni (Max Planck Institute for Demographic Research, Rostock, Germany); Elke Loichinger (Max Planck Institute for Demographic Research, Rostock, Germany); Tobias Vogt (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Population aging is an inevitable global demographic process. Most of the literature on the consequences of demographic change focuses on the economic and societal challenges that we will face as people live longer and have fewer children. In this paper, we (a) describe key trends and projections of the magnitude and speed of population aging; (b) discuss the economic, social, and environmental consequences of population aging; and (c) investigate some of the opportunities that aging societies create. We use Germany as a case study. However, the general insights that we obtain can be generalized to other developed countries. We argue that there may be positive unintended side effects of population aging that can be leveraged to address pressing environmental problems and issues of gender inequality and intergenerational ties. |
| Keywords: | Germany, ageing |
| JEL: | J1 Z0 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2014-003&r=age |
| By: | Alan Fernihough; McGovern, Mark E. |
| Abstract: | Few research papers in economics have examined the extent, causes or consequences of physical stature decline in aging populations. Using repeated observations on objectively measured data from the English Longitudinal Study of Ageing (ELSA), we document that reduction in height is an important phenomenon among respondents aged 50 and over. On average, physical stature decline occurs at an annual rate of between 0.08% and 0.10% for males, and 0.12% and 0.14% for females—which approximately translates into a 2cm to 4cm reduction in height over the life course. Since height is commonly used as a measure of long-run health, our results demonstrate that failing to take age-related height loss into account substantially overstates the health advantage of younger birth cohorts relative to their older counterparts. We also show that there is an absence of consistent predictors of physical stature decline at the individual level. However, we demonstrate how deteriorating health and reductions in height occur simultaneously. We document that declines in muscle mass and bone density are likely to be the mechanism through which these effects are operating. If this physical stature decline is determined by deteriorating health in adulthood, the coefficient on measured height when used as an input in a typical empirical health production function will be affected by reverse causality. While our analysis details the inherent difficulties associated with measuring height in older populations, we do not find that significant bias arises in typical empirical health production functions from the use of height which has not been adjusted for physical stature decline. Therefore, our results validate the use of height among the population aged over 50. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:143351&r=age |
| By: | Bender, Keith A. (University of Aberdeen); Mavromaras, Kostas G. (NILS, Flinders University); Theodossiou, Ioannis (University of Aberdeen); Wei, Zhang (NILS, Flinders University) |
| Abstract: | This paper estimates the propensity to retire and the persistence of remaining retired once the decision to retire has been made in the US labour market, using a dynamic panel probit model. The estimated income effect of higher housing wealth is virtually zero and that of financial assets wealth is positive, increasing the retirement probability. The substitution effect of earned income is negative, thus decreasing the retirement probability. The retirement decision is strongly state persistent for up to three years after the initial retirement decision and the state persistence of retirement is reinforced by wealth and earned income. |
| Keywords: | retirement decision, retirement dynamics, dynamic panel estimation, income and wealth |
| JEL: | J14 J26 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7927&r=age |
| By: | Dirk Broeders; An Chen; Birgit Koos |
| Abstract: | Adequate funding of occupational pension plans is key to benefit security. Across countries different methods of securing funding exist: solvency requirements, a pension guarantee fund, and sponsor support. The key goal of this paper is to investigate the welfare implications to the beneficiary in a hybrid pension scheme. We show that the three security mechanisms can be made utility-equivalent by adjusting the pension contract specifications. The utility-equivalence approach could serve to strengthen the \holistic balance sheet" approach as advised by EIOPA. It enables regulators to compare various pension systems across Europe in a single framework from a utility perspective instead of a valuation perspective. |
| Keywords: | Pension plans; pension regulation; guarantee systems; power utility; certainty equivalents |
| JEL: | G11 G23 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:414&r=age |
| By: | Benjamin Jones; E.J. Reedy; Bruce A. Weinberg |
| Abstract: | Great scientific output typically peaks in middle age. A classic literature has emphasized comparisons across fields in the age of peak performance. More recent work highlights large underlying variation in age and creativity patterns, where the average age of great scientific contributions has risen substantially since the early 20th Century and some scientists make pioneering contributions much earlier or later in their life-cycle than others. We review these literatures and show how the nexus between age and great scientific insight can inform the nature of creativity, the mechanisms of scientific progress, and the design of institutions that support scientists, while providing further insights about the implications of aging populations, education policies, and economic growth. |
| JEL: | J11 O31 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19866&r=age |
| By: | Christophe Imbert (INED); Guilhem Deschamps; Eva Lelièvre (INED); Catherine Bonvalet (INED) |
| Abstract: | Eleven per cent of adults living in France in 2011 live in two or more residences. The phenomenon isparticularly widespread among young adults - 26% of 18-19 year olds are concerned - who live in tworesidences for family and educational reasons. The second home is most frequently used on weekends andholidays. Only 9% to 10% of working adults live in morethan one residence. The second dwelling is mainly used for holidays and leisure, especially after age 60(when retirement increases free time), for those with the physical health and financial resources to maintaina second home. Among French adults, having two residences is most frequent among Île-de-Franceretirees and students from Brittany and Auvergne. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:idg:posoce:507&r=age |
| By: | Gulnara A. Minnigaleeva (National Research University Higher School of Economics) |
| Abstract: | This paper discusses the strategy and success factors of development of age-friendly programs in the City of Tuymazy and Republic of Bashkortostan, Russian Federation, as a part of the Global Age-Friendly Project of World Health Organization. A research followed by a small grass root initiative led to development of a large regional program with 21 municipalities involved. The key success factors included: creating an agency to trigger, promote and implement age-friendly practices; establishing partnerships with government and other organizations in the area; building and maintaining media and public relations; building on culture; expanding and encouraging civic engagement; starting small; providing recognition and credit. Building awareness and partnerships is vital for advancing age-friendly programs. With multiple stakeholders involved it is important to maintain regular communications conduct information sessions and stick to the planning and reporting schedule. For continuity and sustainability of a large scale project it is essential to hire paid staff |
| Keywords: | Age-friendly Cities, Ageing Policies, Nongovernmental Organizations, Community Development, Social Policies, Nonprofit-Government Partnerships, Municipalities, Quality of Life, Welfare, Russia |
| JEL: | H75 I31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:12/pa/2014&r=age |
| By: | Leonardo José Rolim Guimarães (Secretary of Social Security Policies); Rogério Nagamine Costanzi (Director of the Department of the General Social Security Regime); Graziela Ansiliero (Public Policy and Government Management Specialist) |
| Abstract: | Brazil has been making significant advances in its social protection system in the last 10 years. These advances result from improvements made possible through the contributory pillar, such as social security, through non-contributory pillars, and through the coordination of contributory and non-contributory policies. Specifically with regard to social security, there has been a significant increase in the social security coverage of the population |
| Keywords: | Possibilities and Limitations of the Expansion of Social Protection through Classic Contributory Schemes: Notes on the Social Security Inclusion |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opager:237&r=age |