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on Economics of Ageing |
| By: | Rafael Novella (Inter-American Development Bank); Javier Olivera (University of Luxembourg) |
| Abstract: | This paper analyses the effects of retirement on cognitive abilities for the elderly poor on the basis of the “mental retirement” effect that accompanies retirement. Given the recent emergence and expansion of non-contributory pension programs to alleviate poverty in old-age across low and middle income countries, attention should be given to the potential acceleration of cognitive decline when individuals retire, i.e. when there is a decrease in their engagement of cognitive demanding activities. We use a unique and recent survey of the elderly poor in Peru (ESBAM), which includes a cognitive test and serves as the baseline for a non-contributory pension program. We find a significant negative effect of retirement on cognitive ability after controlling for a number of demographics and objective health measures and even after dealing with the potential endogeneity of retirement. |
| Keywords: | cognitive abilities, old-age poverty, retirement, non-contributory pensions, Peru |
| JEL: | H55 J14 J24 J26 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:apc:wpaper:2014-014&r=age |
| By: | David Tuesta |
| Abstract: | Low contribution levels to pension schemes in Latin America are an enormous obstacle limiting the implementation of a broad-based social security system. Contribution rates measured as a ratio of contributors to the total labour force stand at an average of 40%, or 60% in the best of cases. Although previous studies explain this situation by factors related to growth, economic institutions and market considerations, only a few studies have quantified the specific determinants behind this problem. This study therefore aims to approach the subject by exploring the national household surveys for Brazil, Chile, Colombia, Mexico and Peru. Once the specific question relating to pension contributions has been identified in the surveys, probit models are used to estimate the probability that this event may occur, conditioned by the variables that theory considers to be explanatory. The study finds the enormous relevance of labour markets as a common conditional factor affecting the likelihood to contribute to any pension system in Latin America. Working in the informal economy, being a self-employed worker or working in a micro-enterprise are particularly significant and show the highest coefficients in this geographical region. The high impact of these variables may give clues for economic policy, in its search for eliminating the hurdles in labour market distortions that limit the impact of social security programmes. |
| Keywords: | Brazil, Chile, Colombia, Latin America, Mexico, Pension, Peru, AFORE, AFP, Pension contribution, Pension coverage, Retirement |
| JEL: | G23 H55 H75 J01 J26 J38 J32 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:bbv:wpaper:1419&r=age |
| By: | Thomas Barnay; Sandrine Juin |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tep:teppwp:wp14-06&r=age |
| By: | Elena Stancanelli (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Arthur Van Soest (Tilburg University - Netspar) |
| Abstract: | The economic litterature on retirement argues that individuals in a couple tend to retire at a choice time because of externalities in leisure. Ealier studies dit not investigate the extent to which partners actually spend more leisure time together upon retiring. Exploiting the law on early retirement age in France, we use a regression discontinuity approach to identify the causal effect of retirement on hours of leisure, separate and together, of the man and woman in a couple. We use a sample of couples drawn from a French Time Use Survey for the analysis. Using four different definitions of joint leisure, we conclude that generally both separate and joint leisure hours of partners increase significantly upon own retirement. In particular, the hours of leisure spent together by the couple increase on average by about an hour and a half per day upon wife's retirement and by less than an hour upon husband's retirement. The positive effect of partners' retirement on joint leisure is close in size to that on separate leisure or house work hours of partners. |
| Keywords: | Regression discontinuity; retirement, leisure |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00768901&r=age |
| By: | Pierre-Jean Messe; Eva Moreno-Galbis; François-Charles Wolf |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tep:teppwp:wp14-04&r=age |
| By: | Alicia H. Munnell |
| Abstract: | The brief’s key findings are: *The Federal Reserve’s 2013 Survey of Consumer Finances provides an opportunity to examine trends in retirement savings over the past few years. *The good news is increased use of target date funds; the bad news is no improvement in participation rates, significant leakages, and high fees. *Surprisingly, for working households nearing retirement, median combined 401(k)/IRA balances actually fell from $120,000 in 2010 to $111,000 in 2013. *Younger households did see rising balances but retirement savings levels are clearly inadequate, and about half of all households have no 401(k) assets at all. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2014-15&r=age |
| By: | Ai Nakano (Graduate School of Economics, Kobe University) |
| Abstract: | In this study, the relationship between mental health measured by the CES-D scale and self-rated health (SRH) in older Japanese adults was examined using longitudinal micro datasets from the National Survey of the Japanese Elderly (NLSG). Two equations for the relationship between mental health and SRH are estimated simultaneously, and the results showed that SRH had an effect on mental health, and mental health had an effect on SRH. Thus, the mind and body are connected and influence each other. We also determine other important factors that influence health. Age, gender, physical activity, functional abilities such as ADL and IADL, and economic status are associated with both mental and perceived health; having a chronic illness is strongly associated with perceived health; and interpersonal relationships have an effect on mental health. he results suggest that older adults should work on both mind and body to live healthy lives. |
| Keywords: | mental health, self-rated health, the mutual dependence of mind and body |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1423&r=age |
| By: | Renuka Sane (Indian Statistical Institute, New Delhi); Susan Thomas (Indira Gandhi Institute of Development Research) |
| Abstract: | This paper examines the existing implementation of the National Pension Scheme against the goals with which it was created. It finds that there are certain critical areas in which the NPS has deviated. These include multiplicity of schemes, lack of investment choice, low transparency of the system, and a lack of focus on keeping asset management fees low. These gaps are well understood and can be corrected with regulatory interventions. There remain other policy issues that need to be addressed. These include well designed payout policies, and occupational pension systems that will leverage the institutional development of the NPS to include the informalworkforce. |
| Keywords: | Investment choice, intermediation fees, intermediaries, distribution channels, pension payout, annuities, occupational pension systems |
| JEL: | G28 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2014-022&r=age |
| By: | Rafael NOVELLA; Javier OLIVERA |
| Abstract: | This paper analyses gender differences on cognitive abilities for the elderly poor in Peru. We use a unique and recent survey for the elderly individuals living in poverty in Peru (ESBAM) that includes cognitive tests and a comprehensive set of socio-demographics and subjective and objective health measures. We find significant differences in mental intactness in favour of males, and in episodic memory in favour of females. In contrast, there are not gender differences in an overall measure of cognition, but regional differences appear to matter in favour of urban localities. The sizeable associations of education and childhood nutrition quality with cognition confirm the long-term impacts of early life developments on current outcomes. Therefore, policies aimed at improving early childhood development are expected to have a positive impact in later-life. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces14.11&r=age |
| By: | Aaronson, Stephanie (Board of Governors of the Federal Reserve System (U.S.)); Cajner, Tomaz (Board of Governors of the Federal Reserve System (U.S.)); Fallick, Bruce C. (Federal Reserve Bank of Cleveland); Galbis-Reig, Felix (Board of Governors of the Federal Reserve System (U.S.)); Smith, Christopher (Board of Governors of the Federal Reserve System (U.S.)); Wascher, William L. (Board of Governors of the Federal Reserve System (U.S.)) |
| Abstract: | Since 2007, the labor force participation rate has fallen from about 66 percent to about 63 percent. The sources of this decline have been widely debated among academics and policymakers, with some arguing that the participation rate is depressed due to weak labor demand while others argue that the decline was inevitable due to structural forces such as the aging of the population. In this paper, we use a variety of approaches to assess reasons for the decline in participation. Although these approaches yield somewhat different estimates of the extent to which the recent decline in participation reflects cyclical weakness rather than structural factors, our overall assessment is that much - but not all - of the decline in the labor force participation rate since 2007 is structural in nature. As a result, while we see some of the current low level of the participation rate as indicative of labor market slack, we do not expect the participation rate to show a substantial increase from current levels as labor market conditions continue to improve. |
| Keywords: | Labor force participation; retirement behavior; disability insurance; implications of an aging population; youth employment; labor market slack; labor market fluctuations and the business cycle |
| Date: | 2014–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2014-64&r=age |