|
on Economics of Ageing |
| By: | Saito, Hitoshi |
| Abstract: | This study explored the effects of population ageing on public education using Japanese micro data. In recent years, Japan has become the fastest-ageing society among the major countries; the ageing of the population is expected to progress rapidly, such that in 2050, the population of those 65 years of age or older will be about 37% of the total population. Owing to such rapid ageing of the population in Japan, it is important to understand whether the elderly have any preferences regarding public education services. Therefore, through the elderly’s reasons for choosing a place of residence, we examined the difference in their preferences for education due to differences in family type and asset conditions. The results of the analysis, like those obtained by Poterba (1998) and Ohtake and Sano (2009), suggest the possibility that elderly people who no longer live with their families do not support education. However as suggested by Hilber and Mayer (2009), elderly people who have more real estate assets can obtain indirect benefits from education; thus, even if they no longer live with their families, such elderly people may support education. |
| Keywords: | Public Education, Population Ageing, Area of Residence, Intergenerational Altruism |
| JEL: | H75 I22 I28 |
| Date: | 2017–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:79848&r=age |
| By: | Sara Paralta |
| Abstract: | Aging and diabetes influence employment and retirement of those older than 50.The aim of this study is to estimate the impact of diabetes on the ability to work or retire, and to investigate if the development of new job skills, for seniors aged more than 50, increase professional activity in a set of European countries. The fourth wave of the Survey of Health, Ageing and Retirement (SHARE) has been explored by using categorical models that control for age, gender, marital status, education level, new skills and country factors. Diabetes decreases the probable level of professional activity and prolongs retirement. Disparities have been found in the impact of diabetes on peoples' working situation in certain countries, which may be explained through the type of treatments of diabetes and overall by the specificities of each country's health systems. Finally, ageing only slightly increases the period of working, not enough to avoid earlier retirement globally in those European countries. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:cav:cavwpp:wp154&r=age |
| By: | Henkens, Kene (Tilburg University, School of Economics and Management); van Dalen, Harry (Tilburg University, School of Economics and Management); Ekerdt, David J.; Hershey, Douglas A.; Hyde, Martin; Radl, Jonas; van Solinge, Hanna; Zacher, Hannes |
| Abstract: | The current landscape of retirement is changing dramatically as population aging becomes increasingly visible. This review of pressing retirement issues advocates research on (1) changing meanings of retirement; (2) impact of technology; (3) the role of housing in retirement; (4) human resource strategies; (5) adjustment to changing retirement policies; (6) the pension industry; and (7) the role of ethnic diversity in retirement. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:f15b17d9-e1c3-47db-b249-56c31d1d04d9&r=age |
| By: | Kyyrä, Tomi (VATT, Helsinki); Pesola, Hanna (VATT, Helsinki) |
| Abstract: | This paper examines the long-term effects of extended unemployment benefits that older unemployed can collect until retirement in Finland. We consider a reform that increased the age threshold of this scheme from 55 to 57 for people born in 1950 or later. Our regression discontinuity estimates show that postponing eligibility by two years increased employment over the remaining working career by seven months. Despite the corresponding reduction in unemployment, we find no evidence of significant effects on mortality or receipt of disability and sickness benefits, nor on the spouse's labor supply. We also compute the fiscal impact of the reform taking into account income taxes and social security contributions paid and benefits received. The reform increased net income transfers by 15,000 Euros over the 10-year period for an average individual. |
| Keywords: | unemployment insurance, early retirement, layoffs |
| JEL: | J26 J63 J64 J65 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10839&r=age |
| By: | Bingley, Paul (SFI - The Danish National Centre for Social Research); Martinello, Alessandro (Department of Economics, Lund University) |
| Abstract: | Education and wealth are positively correlated for individuals approaching retirement, but the direction of the causal relationship is ambiguous in theory and has not been identified in practice. We combine administrative data on individual total wealth with a reform expanding access to lower secondary school in Denmark in the 1950s, finding that schooling increases pension annuity claims but reduces the non-pension wealth of men in their 50's. These effects grow stronger as normal retirement age approaches. Labour market mechanisms are key, with schooling increasing job mobility, reducing housing equity, increasing leverage, and improving occupational pension benefits. |
| Keywords: | Education; Wealth; Labour market mechanisms; Pensions; Housing equity; Portfolio composition; Instrumental variable |
| JEL: | D31 G11 I24 I26 |
| Date: | 2017–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2017_009&r=age |
| By: | Jorge Alonso; Catalina Amuedo-Dorantes; Laura Juárez |
| Abstract: | This paper examines the effects of non-contributory pension programs at the federal and state levels on Mexican households' saving patterns using micro data from the Mexican Income and Expenditure Survey. The federal program by itself appears to reduce the saving rate of households whose oldest member is either 18 to 54 or 65 to 69. State programs by themselves have no significant effects on household saving rates in the smallest localities, but in larger localities they may reduce the saving of households with members in their sixties. The combination of both types of programs generally does not have statistically significant effects on households' aggregate saving, probably because each program seems to affect different population strata. No significant effects are found for households whose oldest member is age-eligible (70 and older). Within specific investment categories, evidence is found of increases in human capital and in durable and financial goods for some age groups. Finally, the paper provides evidence on household-level labor supply responses. |
| Keywords: | Pensions Systems, Household Saving Rate, Labor supply, Housing, Human Capital Investment, Financial Assets, Household Income, Pension funds, Social Insurance, household saving rate, pensions systems |
| JEL: | H55 O12 J26 D14 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:95976&r=age |
| By: | Frank T. Denton; Byron G. Spencer |
| Abstract: | A shift in population distribution toward older ages is underway in industrialised countries throughout the world and will continue well into the future. We provide a framework for isolating the pure effects of population aging on per capita GDP, employ the framework in calculations for twenty OECD countries, and derive the rates of productivity growth required to offset those effects. We consider also some labourrelated changes that might provide offsets, for comparison with productivity. |
| JEL: | J1 J11 O4 |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:deptwp:2017-08&r=age |
| By: | Yu-Hsiang Cheng (Public Utilities Section, Department of Public Works, Keelung City Government); Hsuan-Chih (Luke) Lin (Institute of Economics, Academia Sinica, Taipei, Taiwan); Atsuko Tanaka (Department of Economics, University of Calgary) |
| Abstract: | This paper quantifies the fiscal costs of different pension reforms in Taiwan that achieve long-run sustainability. We build a general equilibrium life-cycle model with endogenous labor supply in both intensive and extensive margins, consumption, saving, and benefit claiming. Several options to make pensions sustainable under current demographic changes are presented; increase income tax by 5.4 percent, increase the consumption tax by 6.2 percent, increase the pension tax by 9 percent, or reduce the pension benefits by 23.5 percent. Furthermore, we evaluate the changes in macroeconomic indicators as well as labor market outcomes under different reforms. Last, we highlight the importance of the general equilibrium effects that can account for endogenously saving and labor supply, as partial equilibrium analysis usually underestimates negative effects. |
| Keywords: | Pension Reform, Long-Run Sustainability, Intensive and Extensive Margins JEL Classification: E2, E6, H5, J2 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:sin:wpaper:17-a008&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | Between 1999-2000 and 2010-11, total government program spending increased by 36.4%, from $7,505 per capita to $10,240 on a constant dollar basis. Nowhere is the need to bring expenditures and revenue into alignment more obvious and critical than in health care... with the population aging – and more expensive medical technology and treatments available to improve health outcomes and quality of life – we have every reason to believe spending on health care will continue to rise in the foreseeable future.” Shaping Alberta’s Future: Report of the Premier’s Council for Economic Strategy (Alberta 2011, p. 96-97). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:145&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | We know there is nothing more important to Manitoba families than the health of their loved ones. That’s why health care has always been our top priority. Mr. Speaker, we are focused on expanding care instead of costs.” (Manitoba Budget Address 2012, p. 3). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:147&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | New Brunswickers have been clear about their priorities: they want quality, affordable health care and services for our seniors.” (2012/13 New Brunswick Budget, p. 14). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:150&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | The health budget will continue to grow at a rate of 4.8% a year. ... [P]rogram spending growth targets have been set at 1.8% for 2013-2014....” 2013/14 Quebec Budget Speech (pp. 7 and 20). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:149&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | If we do not seize the opportunity now to begin creating a system that delivers more value for the money we spend, Ontarians a decade or two hence will face options far less attractive than the ones we face today.... [T]hey will be confronted with steadily escalating costs that force them to choose either to forgo many other government services that they treasure, pay higher taxes to cover a relentlessly growing health care bill, or privatize parts of the health care system....” Commission on the Reform of Ontario’s Public Services. Public Services for Ontarians: A Path to Sustainability and Excellence (Ontario 2012, p. 27). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:148&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | No services are more important than the health and community services we deliver through our four Regional Health Authorities. This year, we will invest more than 40% of total [operating] expenditures – nearly $3 billion – in healthcare....” Newfoundland and Labrador 2012 Budget Speech (p. 15). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:153&r=age |
| By: | Inas Rashad Kelly |
| Abstract: | Direct medical costs associated with falls have been shown to be $34 billion in 2013, an underestimate since full costs are not factored in. Using the 1998-2012 waves of the Health and Retirement Study and several econometric methods to address the endogeneity of falls, this study seeks to answer the question of how much worse physical and mental health outcomes are for individuals who fall compared to their steadier counterparts. Results across various specifications suggest that falling leads to lower activities of daily living, more depression, and more psychological problems. It leads to greater probabilities of being in poor health, having heart problems, and having a stroke. These results survive several robustness checks. |
| JEL: | I1 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23517&r=age |
| By: | Daniel Baksa (Department of Economics, Central European University; Institute of Economics, Hungarian Academy of Sciences); Mihnea Constantinescu (Bank of Lithuania); Zsuzsa Munkacsi (Bank of Lithuania) |
| Abstract: | We extend OGRE, the overlapping generation model developed by Baksa and Munkacsi (2016) by adding openness. We then employ the model to explore how the macroeconomic effects of aging, assumed to manifest itself as a decrease in the mortality rate, can be counteracted through public policies. The extended version inherits the previous modelling features of OGRE allowing us to also account for the impact openness has on the effectiveness of the considered policies. |
| Keywords: | population aging, public pension reforms, pay-as-you-go, fully funded, shadow economy, informal employment, small open-economy, overlapping generations |
| JEL: | E24 E26 F41 H55 J11 J46 |
| Date: | 2016–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:lie:dpaper:2&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | Health, as we all know, is by far the biggest part of the budget. And for years it has also been the fastest growing.... This government has reduced health-care administration costs to below the national average, and has cut the rate of growth of health spending. That is no small feat....” 2012 Nova Scotia Budget Speech (Nova Scotia, p. 11). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:151&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | In 2007–2008, comparable health care expenditures stood at $425 Million. Since then, these costs have grown 7 per cent annually... [S]tatus quo growth of 7 percent per year in health care spending is simply not an option. The more we spend on health, the less we are able to address the other needs of Islanders. This fiscal pressure must and will be addressed.” 2012 Prince Edward Island Budget Address (p. 8-9). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:152&r=age |
| By: | Grishina Elena (RANEPA); Avksentiev Nikolay (Financial Research Institute) |
| Abstract: | In the following, we analyze the budget execution of the two main (in terms of size and value for the budget system) public off-budget funds: The Pension Fund of Russia (hereinafter – PFR) and The Federal Compulsory Medical Insurance Fund |
| Keywords: | Russian economy, pension fund, medical insurance fund |
| JEL: | D6 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2017-286&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | Spending on healthcare in the western provinces and Canada has increased over time, outpacing growth in other government program spending. Further, the trend is expected to continue given the aging population and an increase in demand for new technology and treatments, which is a concern for the sustainability of the healthcare system in the near future.” Saskatchewan 2010/11 Ministry of Health Strategic Plan (Saskatchewan 2010, p. 15). |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:146&r=age |
| By: | Jeffrey Flory; Uri Gneezy; Kenneth Leonard; John List |
| Abstract: | Research on competitiveness at the individual level has emphasized sex as a physiological determinant, focusing on the gap in preference for competitive environments between young men and women. This study presents evidence that women's preferences over competition change with age such that the gender gap, while large for young adults, disappears in older populations due to the fact that older women are much more competitive. Our finding that tastes for competition appear just as strong among older women as they are among men suggests a simple gender-based view of competitiveness is misleading; age seems just as important as sex. These findings are consistent with one of the most commonly cited views on the deeper origins of gender differences: that they stem at least in part from human evolution. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:feb:artefa:00611&r=age |
| By: | Alfonso R. Sánchez |
| Abstract: | Las próximas décadas supondrán un auténtico desafío para la economía española. El horizonte se presenta cargado de incertidumbres que se extienden desde los fundamentos técnicos y organizativos de la economía hasta sus formas institucionales y políticas. Estas tensiones tienen como telón de fondo dos procesos demográficos simultáneos: el aumento secular en la esperanza de vida y la jubilación de las cohortes de “Baby-boomers”. El primero de los procesos es progresivo e irresistible, empujando poco a poco a las economías a la realidad del envejecimiento generalizado. El segundo proceso generar ́a cambios muy importantes y relativamente rápidos en la composición por edades de la población. Dejará sentir sus efectos en la dotación de factores productivos, el crecimiento y todos los aspectos relacionados con los flujos de trasferencia entre generaciones. Entre ellos, el saldo financiero del sistema público de pensiones es el m ́as evidente y el que constituye el centro de atención de este trabajo. |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaeee:eee2017-15&r=age |
| By: | William R. Kuchinski; Rick Ogden; Damian R. Thomas; Missaka Warusawitharana |
| Abstract: | The Financial Accounts of the United States reports quarterly net equity issuance of nonfinancial corporations. To highlight the importance and potential use of our new data, we conclude this note by mentioning a few studies that have examined the determinants and consequences of equity financing. |
| Date: | 2017–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2017-06-16-1&r=age |
| By: | Colin Busby (C.D. Howe Institute); William Robson (C.D. Howe Institute) |
| Abstract: | Before the worldwide economic crisis, health care funding in B.C. was rising by an average of about seven per cent per year. Since 2009, the rate of increase has declined to about five per cent. And now, going forward, we’re looking at lifts closer to three per cent per year. Even with this modest growth, health care is projected to account for more than 42 per cent of total government spending by 2014-15. We can’t just keep pouring more and more dollars in. We have to find creative ways to minimize expenses....” (British Columbia Budget Speech 2012, p. 7.) |
| Keywords: | Social Policy, Health Policy |
| JEL: | I1 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:144&r=age |
| By: | Carlsson, Magnus (Linnaeus University); Eriksson, Stefan (Department of Economics, Uppsala University) |
| Abstract: | In most countries, there are systematic age and gender differences in labor market outcomes. Older workers and women often have lower employment rates, and the duration of unemployment increases with age. These patterns may reflect age and gender differences in either labor demand (i.e. discrimination) or labor supply. In this study, we investigate the importance of demand effects by analyzing whether employers use information about a job applicant’s age and gender in their hiring decisions. To do this, we conducted a field experiment, where over 6,000 fictitious resumes with randomly assigned information about age (in the interval 35-70) and gender were sent to employers with a vacancy and the employers’ responses (callbacks) were recorded. We find that the callback rate starts to fall substantially early in the age interval we consider. This decline is steeper for women than for men. These results indicate that age discrimination is a widespread phenomenon affecting workers already in their early 40s in many occupations. Ageism and occupational skill loss due to aging are unlikely explanations of these effects. Instead, our employer survey suggests that employer stereotypes about three worker characteristics – ability to learn new tasks, flexibility/adaptability, and ambition – are important. We find no evidence of gender discrimination against women on average, but the gender effect is heterogeneous across occupations and firms. Women have a higher callback rate in female-dominated occupations and firms, and when the recruiter is a woman. These results suggest that an in-group bias affects hiring patterns, which may reinforce the existing gender segregation in the labor market. |
| Keywords: | age; gender; discrimination; field experiment; labor market |
| JEL: | J23 J71 |
| Date: | 2017–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ifauwp:2017_008&r=age |