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on Economics of Ageing |
| By: | Jana Votapkova (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic); Pavlina Zilova (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | The paper aims to find out whether health status determines the level of liquid savings among a pre-retirement (50-60 years old) segment of the Czech population as retrieved from the SHARE (Survey of Health, Aging and Retirement in Europe) database, Wave 5 using a 2SLS methodology. Other demographic, health and economic characteristics are considered. We find a significant positive relationship between health and savings. It suggests that careful design of preventive health programs could ease the public pension system because if healthy, individuals could secure themselves for retirement. |
| Keywords: | Health status, savings, Czech Republic, 2SLS, SHARE Dataset |
| JEL: | D14 I15 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2017_10&r=age |
| By: | Campaña, Juan Carlos |
| Abstract: | In this paper, I analyse the differences in the time devoted to walking, cycling, gymnastics, and hunting by the elderly in Spain, considering own and socio-demographic characteristics. Using data from the Spanish Time-Use Survey (STUS) 2009-10, I estimate a simultaneous SUR model with data from the 4,036 individuals aged 65 years and over (inclusive), finding that men devote more time to the four physical activities than do women, that good health positively influences the time devoted to these activities, and that living in a large municipality positively influences the time devoted to walking, while living in a very large municipality negatively influences the time devoted to cycling. The work is important in terms of public policy, since inactive lifestyles are a major public health challenge, and an analysis of these activities may provide guidance toward better solutions. An increase in the frequency of physical activity in the Spanish population in this age range would lead to a significant reduction of health expenditure. |
| Keywords: | Elderly, Physical activities, Time use, SUR model |
| JEL: | J14 J22 |
| Date: | 2017–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80391&r=age |
| By: | Roine Vestman (Stockholm University); Ofer Setty (Tel Aviv University); Magnus Dahlquist (Stockholm School of Economics) |
| Abstract: | We characterize the optimal default fund in a defined contribution (DC) pension plan. Using detailed data on individuals' holdings inside and outside the pension system, we find substantial heterogeneity within and between passive and active investors in terms of labor income, financial wealth, and stock market participation. We build a life-cycle consumption-savings model with a DC pension account and an opt-out/default choice. The model produces realistic investor heterogeneity. We examine the optimal default asset allocation, which implies a welfare gain of 1.5% over a common age-based allocation. Most of the gain is attainable with a simple rule of thumb. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed017:255&r=age |
| By: | Marius Bickmann (TU Dortmund) |
| Abstract: | This paper provides a quantitative analysis of intra-European migration flows between Germany, Southern Europe and Poland along the demographic transition. Migration movements evolve endogenously as a reaction to changes in relative prices induced by population aging. Immigration from Southern Europe and Poland reduces wages in Germany slightly, but alleviates the distortions from social security significantly. This lower elasticity of wages is caused by a large inflow of capital accompanying immigration which counteracts the downward pressure on wages due to a higher labor supply. Welfare effects of endogenous migration flows depend crucially on the policy scenario. If contribution rates remain constant and the burden of adjustment lies on benefits, the negative wage effect dominates leading to moderate welfare losses for future generations in Germany. On the contrary, if tax rates adjust, welfare effects are both positive and larger since immigration serves to stabilize net wages. However, these positive welfare effects in Germany come at the expense of significant welfare losses in the sending regions. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed017:259&r=age |
| By: | van Dalen, Harry (Tilburg University, Center For Economic Research); Henkens, K. |
| Abstract: | Background: Stereotypies of older workers and their productive value are believed to contrast with their actual potential. Still, these stereotypes among employers persist. Objective: This article examines whether managers have changed their views on older workers and if so what the driving forces are of these changes. Methods: Using panel data we examine the changes in attitudes among Dutch managers about the productive skills of older workers (50 years and older) between 2010 and 2013. Results: Managers have adjusted their view of older workers in a significant manner, especially about their so-called soft skills, like reliability and loyalty. Hard skills or qualities - like physical stamina, new tech skills and willingness to train - have not changed. Important drivers behind these changes are the age of the manager – the older the manager the more positive he or she is about older workers – and the experience with older workers in the past two years. Increase in the occurrence of problems with older workers tends to depress their assessment of soft and hard skills. Firm characteristics add little explanatory power. Conclusions: Attitudes are not easily susceptible to change but this study shows that the biggest effects are to be expected from the process of aging itself: older managers tend to have a more positive assessment of the hard and soft skills of older workers. Contributions: The main contribution to the scientific literature of this paper is to see in changes in attitudes of individual managers towards older workers over time and the underlying drivers of change. |
| Keywords: | managers; older worker; productivity; stereotypes; discrimination |
| JEL: | J23 J71 D22 J1 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:53a19b91-96af-4683-8665-2ae54aff0835&r=age |
| By: | Dögüs, Ilhan |
| Abstract: | It has already been pointed out in the literature on financialisation that private pension funds have played a key role in the inflation of financial markets. This paper argues that an increase in wage dispersion between white-collar and blue-collar workers affects pension funds in a direct and structural manner. Using Saez-Zucman and fred.stlouisfed annual datasets, the proposed argument is statistically analysed by applying Vector Autoregressive modelling for the period 1966-2013 in the USA. The results show that the responses of share of pension funds within US-household wealth to one-unit shock in wage dispersion are positive and significant over the first three years. Furthermore, wage dispersion explains 11% of variations in pension funds' share in household wealth in the short-run and 19% of variations in the long-run. The study concludes that wage dispersion has a direct and structural impact on pension funds and contributes to the literature by clarifying the rise and expansion of pension funds. |
| Keywords: | financialisation,pension funds,wage dispersion,savings out of salaries,white-collar workers,capital market inflation |
| JEL: | J31 D14 E44 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cessdp:63&r=age |
| By: | Sutirtha Bagchi (Department of Economics, Villanova School of Business, Villanova University) |
| Abstract: | In politically competitive jurisdictions, there can be strong electoral incentives to underfund public pensions in order to keep current taxes low. I examine this hypothesis using panel data for 2,000 municipal pension plans from Pennsylvania. The results suggest that as a municipality becomes more politically competitive, it tends to have pension plans that are less funded. The effects of political competition are driven by municipalities that have a higher proportion of less informed voters and are absent for pension plans offered by municipal authorities. The negative relationship between political competition and funding status is present for state pensions as well. |
| Keywords: | Public-sector pensions; political competition; unfunded liabilities; actuarial funded ratio |
| JEL: | H75 J45 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:vil:papers:36&r=age |
| By: | Inmaculada Domínguez-Fabián; Francisco del Olmo; José A. Herce |
| Abstract: | La literatura ha abordado el problema de las pensiones llegando a la conclusión casi unánime de que el incremento de la longevidad es la causa principal del problema de las pensiones. Sin embargo, a nuestro parecer, la longevidad no es un problema y, por lo tanto, no debería ser la causa del “problema de las pensiones”. El auténtico reto para la sostenibilidad de los sistemas de pensiones radica en la ausencia de adaptación de los mismos al aumento de la longevidad, olvidando que, en sus orígenes, la Seguridad Social nació justamente para asegurar contra la longevidad después de la “gran edad”. En este trabajo se muestra cómo la edad de jubilación en absoluto ha mantenido el ritmo de adaptación que exigiría el aumento de la longevidad. También se analiza el balance actuarial de los recursos y necesidades del ciclo vital. Finalmente se avanza, y se simula empíricamente, la propuesta de crear un «sistema mixto en dos etapas». Dicho sistema se estructura en un primer pilar definido como un seguro de capitalización individual que interviene entre la edad de jubilación voluntariamente adoptada por los trabajadores y lo que denominamos “gran edad”, al que sucedería en el tiempo otro estructurado como un sistema de reparto público de cuentas individuales de contribución definida (cuentas nocionales) a partir de dicha gran edad. |
| Keywords: | Pensiones, longevidad, ciclo vital, gran edad, cuarta edad, sistema mixto en dos etapas |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:uae:wpaper:0617&r=age |