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on Economics of Ageing |
| By: | Javier Pla-Porcel (Actuarial Department, SOS Seguros y Reaseguros, S.A., Madrid. (Spain).); Manuel Ventura-Marco (Department of Financial Economics and Actuarial Science, University of Valencia, Spain.); Carlos Vidal-Meliá (Department of Financial Economics and Actuarial Science, University of Valencia, Spain, and Instituto Complutense de Análisis Económico, Complutense University of Madrid, Spain.) |
| Abstract: | This paper aims to assess gender redistribution when using unisex conversion factors to compute the initial benefit of life care annuities (LCAs) embedded in a pay-as-you-go (PAYG) pension system. We use a method based on actuarial factors to disentangle the hidden redistribution of LCAs with graded benefits. The value of the actuarial factor relies on a multistate framework in which transitions are modeled from the initial health state to the absorbing state. According to our calculations for Australia and the US, the amount of gender redistribution is by no means irrelevant. In spite of the very different biometric data, the results are surprisingly similar for both countries. Risk equalization based on the “equal treatment” of men and women may not be fair, given that age, gender and health state are very significant risk factors in computing the initial benefit in a system covering retirement and long-term care. |
| Keywords: | Gender, Life Care Annuities, Long-Term Care Insurance, Multistate model, Redistribution, Retirement. |
| JEL: | G22 H55 I13 J14 J26 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:doicae:1711&r=age |
| By: | Sanchez-Romero, Miguel; Fürnkranz-Prskawetz, Alexia |
| Abstract: | We investigate the differential impact that pension systems have on the labor supply and the accumulation of physical and human capital for individuals that differ by their learning ability and levels of life expectancy. Our analysis is calibrated to the US economy using a general equilibrium model populated by overlapping generations, in which all population groups interact through the pension system, the labor market, and the capital market. Within our framework we analyze the redistributive and macroeconomic effects of a progressive versus a flat replacement rate of the pension system. |
| Keywords: | Human capital,Longevity,Inequality,Life cycle,Social Security |
| JEL: | E24 J10 J18 H55 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuweco:032017&r=age |
| By: | Johannes Geyer; Clara Welteke |
| Abstract: | We present quasi-experimental evidence on the employment effects of an unprecedented large increase in the early retirement age (ERA). Raising the ERA has the potential to extend contribution periods and to reduce the number of pension beneficiaries at the same time, if employment exits are successfully delayed. However, workers may not be able to work longer or may choose other social support programs as exit routes from employment. We study the effects of the ERA increase on employment and potential program substitution in a regression-discontinuity framework. Germany abolished an important early retirement program for women born after 1951, effectively raising the ERA for women by three years. We analyze the effects of this huge increase on employment, unemployment, disability pensions, and inactivity rates. Our results suggest that the reform increased both employment and unemployment rates of women age 60 and over. However, we do not find evidence for active program substitution from employment into alternative social support programs. Instead employed women remained employed and unemployed women remained unemployed. The results suggest an increase in inequality within the affected cohorts. |
| Keywords: | Retirement age, early retirement, regression discontinuity, pension reform, unemployment, labor supply, disability pension |
| JEL: | J14 J18 J22 J26 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1653&r=age |
| By: | Lara Tavares (CAPP, Instituto Superior de Ciências Sociais e Políticas, Universidade de Lisboa & CICS.NOVA, Centro Interdisciplinar de Ciências Sociais, Universidade Nova de Lisboa); Francesca Zantomio (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | Despite the sizeable cuts in public healthcare spending, part of the austerity measures recently undertaken in Southern European countries, little attention has been devoted to monitoring distributional aspects of healthcare usage. This study aims at measuring socioeconomic inequities in primary and secondary healthcare experienced some time after the crisis onset in Italy, Spain and Portugal. The analysis, based on data drawn from the Survey of Health, Ageing and Retirement in Europe (SHARE), focuses on older people, who generally face significantly higher healthcare needs, and whose health appeared to have worsened in the aftermath of the crisis. The Horizontal Inequity indexes reveal remarkable socioeconomic inequities in older people’s access to secondary healthcare in all three countries. In Portugal, the one country facing most severe healthcare budget cuts and where user charges apply also to GP visits, even access to primary care exhibits a significant pro-rich concentration. If reducing inequities in older people’s access to healthcare remains a policy objective, austerity measures maybe pulling the Olive belt countries further away from achieving it. |
| Keywords: | Healthcare access, Older People, Horizontal Equity, Concentration Index |
| JEL: | I13 I14 H51 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2017:03&r=age |
| By: | Steven A. Sass |
| Abstract: | Retirement planning generally focuses on the use of financial assets. However, home equity is the largest store of savings for most households entering retirement. This brief reviews studies by the Social Security Administration’s Retirement Research Consortium and others that assess whether home equity is an underutilized retirement asset and, if so, why. The discussion proceeds as follows. The first section discusses how home equity differs from financial assets. The second section reviews the use of downsizing to access home equity. The third section reviews the use of reverse mortgages. The final section concludes that home equity has been an underutilized retirement asset due to behavioral and informational impediments, and that it remains to be seen whether the growing financial pressures on retirees to tap their savings will overcome these impediments. |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2017-6&r=age |
| By: | Takuya Matsuyama (Graduate School of Economics, Kobe University); Tomomi Miyazaki (Graduate School of Economics, Kobe University) |
| Abstract: | This paper examines the relationship between immigration and social welfare expenditure in the host countries using OECD panel data. Particular focus is placed on the age structure and educational level of immigrants. Empirical results show that while unskilled immigrants including asylum seekers are not necessarily a burden to the host countries, medium and highly skilled immigrants contribute to a decrease in social expenditure. In particular, highly skilled immigrants mitigate the increase in social expenditure related to welfare for the elderly driven by the aging of immigrants. |
| Keywords: | Immigration, social welfare expenditure |
| JEL: | J15 J61 H55 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1708&r=age |
| By: | Mouna Ben Othman; Mohamed Ali Marouani |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:uds:wpaper:20160001&r=age |
| By: | Ben Braham Mehdi; Mohamed Ali Marouani |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:uds:wpaper:20160004&r=age |
| By: | Jody Schimmel Hyde; April Yanyuan Wu |
| Abstract: | This brief considers the post-retirement financial well-being of workers based on whether they received Social Security Disability Insurance (DI). |
| Keywords: | Disability, retirement, well-being, SSDI, Social Security |
| JEL: | I J |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:7414e13ae5964acdb3326e14dfe8853a&r=age |
| By: | Omoniyi B Alimi (University of Waikato); David C Maré (Motu Economic and Public Policy Research); Jacques Poot (University of Waikato) |
| Abstract: | As is the case in most developed countries, the population of New Zealand is ageing numerically and structurally. Population ageing can have important effects on the distribution of personal income within and between urban areas. The age structure of the population may affect the distribution of income through the life-cycle profile of earnings but also through the spatial-temporal distribution of income within the various age groups. By decomposing New Zealand census data from 1986 to 2013 by age and urban area, this chapter examines the effects of population ageing on spatial-temporal changes in the distribution of personal income to better understand urban area-level income inequality (measured by the Mean Log Deviation index). We focus explicitly on differences between metropolitan and non-metropolitan urban areas. New Zealand has experienced a significant increase in income inequality over the last few decades, but population ageing has slightly dampened this trend. Because metropolitan areas are ageing slower, the inequality-reducing effect of ageing has been less in these areas. However, this urban-size differential-ageing effect on inequality growth has been relatively small compared with the faster growth in intra-age group inequality in the metropolitan areas. |
| Keywords: | Inequality, age composition, urbanisation, population aging |
| JEL: | J11 D31 R23 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:17_02&r=age |