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on Economics of Ageing |
| By: | Marcin Bielecki (Faculty of Economic Sciences, University of Warsaw); Karolina Goraus (Faculty of Economic Sciences, University of Warsaw); Jan Hagemejer (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland) |
| Abstract: | We evaluate the welfare and macroeconomic effects of increasing the retirement age in the context of population aging. In an overlapping generations framework we simulate the increase of the retirement age by seven years under different pension systems (defined benefit, notionally defined contribution and fully funded). We show that raising the retirement wage is universally welfare enhancing for all living and future cohorts, regardless of the pension system. Quantitatively, this policy intervention is able to counterweight the adverse macroeconomic consequences of aging. We test the validity of our findings in a population with lower pace of aging due to higher fertility. Finally, we show scope for further welfare gains if productivity is relatively high at old ages. |
| Keywords: | pension system, defined benefit, NDC, retirement age, pension system reform, welfare |
| JEL: | C68 E17 E25 J11 J24 H55 D72 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2014-12&r=age |
| By: | Andrea Ichino (Università di Bologna (UNIBO)); Guido Schwerdt (Ifo Institute for Economic Research); Rudolf Winter-Ebmer (University of Linz and Institute for Advances Studies, Vienna); Josef Zweimüller (University of Zurich) |
| Abstract: | We study whether employment prospects of old and young workers differ after a plant closure. Using Austrian administrative data, we show that old and young workers face similar displacement costs in terms of employment in the long-run, but old workers lose considerably more initially and gain later. We interpret these findings using a search model with retirement as an absorbing state, that we calibrate to match the observed patterns. Our finding is that the dynamics of relative employment losses of old versus young workers after a displacement are mainly explained by different opportunities of transition into retirement. In contrast, differences in layoff rates and job offer arrival rates cannot explain these patterns. Our results support the idea that retirement incentives, more than weak labor demand, are responsible for the low employment rates of older workers. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/3tbgp7jdmr8h1qccuk9kiohoki&r=age |
| By: | Hau Chyi; Shangyi Mao |
| Abstract: | ‘‘Three generations under one roof’’ is an old Chinese saying used to describe a desired living arrangement. The traditional concept of happiness for a Chinese elderly person is being able to ‘‘play with grandchildren with candy in mouth, enjoy life with no cares.’’ In a fast-changing economy like, how does society, especially the elderly themselves, view these traditional values? Using the 2005 Chinese General Social Survey, we study the determinants of happiness of the Chinese elderly. We are particularly interested in whether living with their child and whether living with their grandchild affect the happiness of the elderly. An important empirical concern is that unobserved permanent income may affect both the living arrangements of the elderly and their level of happiness. We include property ownership variables as proxies and also adopt an instrument variable approach to identify the causal relationship between the elderly’s happiness and their living arrangements. We find that, conditional on living with a grandchild, living with one’s child has a negative effect on the elderly’s happiness. Furthermore, elderly Chinese who live with grandchildren are associated with a much higher degree of happiness than their counterparts. |
| Keywords: | Happiness; Chinese Elderly; Living Arrangement |
| Date: | 2013–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:wyi:journl:002134&r=age |
| By: | Hetschko, Clemens; Knabe, Andreas; Schöb, Ronnie |
| Abstract: | Previous studies find that past unemployment reduces life satisfaction even after reemployment for non-monetary reasons (unemployment scarring). It is not clear, however, whether this scarring is only caused by employment-related factors, such as worsened working conditions, or increased future uncertainty as regards income and employment. Using German panel data, we identify non-employment-related scarring by examining the transition of unemployed people to retirement as a life event after which employment-related scarring does not matter anymore. We find evidence for non-employment-related non-monetary unemployment scarring for people who were unemployed for the first time in their life directly prior to retirement, but not for people with earlier unemployment experiences. -- |
| Keywords: | unemployment scarring,life satisfaction,retirement |
| JEL: | I31 J26 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:201411&r=age |
| By: | Piper, Alan T. |
| Abstract: | Much of the work within economics attempting to understand the relationship between age and well-being has focused on the U-shape, whether it exists and, more recently, potential reasons for its existence. This paper focuses on one part of the lifecycle rather than the whole: young people. This offers a better understanding of the age-well-being relationship for young people, and helps with increasing general understanding regarding the U-shape itself. The empirical estimations employ both static and dynamic panel estimations, with the latter providing an illustration of the importance of decisions concerning the endogeneity or exogeneity of the regressors. The empirical results are in line with the U-shape, and the results from the dynamic analysis both lend support to reasons put forward for the changing nature of the age-well-being relationship over the whole lifecycle and also suggest a further avenue for research. |
| Keywords: | Life Satisfaction, Aging, Young People, Dynamic Panel Analysis |
| JEL: | C23 I31 J13 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55819&r=age |
| By: | Otterbach, Steffen; Sousa-Poza, Alfonso |
| Abstract: | In this paper, we use 12 waves of the German Socio-Economic Panel to examine the relationship between job insecurity, employability and health-related well-being. Our results indicate that being unemployed has a strong negative effect on life satisfaction and health. They also, however, highlight the fact that this effect is most prominent among individuals over the age of 40. A second observation is that job insecurity is also associated with lower levels of life satisfaction and health, and this association is quite strong. This negative effect of job insecurity is, in many cases, exacerbated by poor employability. -- |
| Keywords: | job insecurity,employment,employability,well-being,health,Germany |
| JEL: | J21 J22 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:882014&r=age |
| By: | Jacqueline Kauff; Lisa Dragoset; Elizabeth Clary; Elizabeth Laird; Libby Makowsky; Emily Samaa-Miller |
| Keywords: | SNAP, Access, Elderly, Working poor, outreach, application assistance, participation |
| JEL: | I0 I1 |
| Date: | 2014–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:8113&r=age |