nep-age New Economics Papers
on Economics of Ageing
Issue of 2017‒09‒24
thirteen papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Pension reform in Belarus in the shadow of Social Europe: vulnerability issues of people aged 50+ and points for improvement By Sierž Naurodski
  2. Stakeholders in pension finance By Boon, Ling-Ni
  3. Access to Long-Term Care After a Wealth Shock: Evidence from the Housing Bubble and Burst By Joan Costa Font; Richard Frank; Katherine Swartz
  4. Labour supply and informal care supply: The impacts of financial support for long-term elderly care By Hollingsworth, Bruce; Ohinata, Asako; Picchio, Matteo; Walker, Ian
  5. Adjusting the Payroll Tax to Promote Longer Careers By John Laitner; Dan Silverman
  6. Mortality and Morbidity in the 21st Century By Anne Case; Angus Deaton
  7. Weighting Sub-Populations in Longevity Inequality Research: A Practical Approach By Adam Szulc
  8. Long-term care policy with nonlinear strategic bequests By Canta, Chiara; Cremer, Helmuth
  9. The Impact of Population Aging on Financial Market Structures and Policy Implications By Yoon, Deok Ryong; Rhee, Dong-Eun
  10. Social harmonization and labor market performance in Europe By Katarzyna Mirecka; Izabela Styczyñska
  11. The Effect of the Program of All-Inclusive Care for the Elderly (PACE) on Quality By Jody Beauchamp; Valerie Cheh; Robert Schmitz; Peter Kemper; John Hall
  12. Inequality and poverty in Greece: Changes in times of crisis By Andriopoulou, Eirini; Karakitsios, Alexandros; Tsakloglou, Panos
  13. La transmission inter-générations des connaissances au sein des communautés de pratique By Nabila Benmostefa

  1. By: Sierž Naurodski
    Abstract: The policy brief by Sierž Naurodski presents a review of potential effects of parametric pension reform in Belarus starting in 2017 for the population aged 50 and more in terms of unemployment, alcohol consumption, and poverty. It concludes that, despite the fact that raising the retirement age is overdue in Belarus to address demographic challenges, it may have a negative impact on the quality of life of people close to retirement age as well as a poorer GDP effect within current conditions on the labor market in Belarus. The paper presents a set of public policy improvement directions in Belarus, which could help mitigating vulnerability of the group 50+ during the pension reform.
    Keywords: Belarus, parametric pension reform, pre-retirement population vulnerability, 50+, social security, policy in transition countries
    JEL: H53 H55 J14 J26
    Date: 2017–03
  2. By: Boon, Ling-Ni (Tilburg University, School of Economics and Management)
    Abstract: This dissertation examines three stakeholders in pension finance: the individual, the policymaker, and the pension provider (e.g., an insurer or a pension fund). In a setting beset by unforeseen financial market circumstances and demographic changes that disfavor financial security in retirement, a re-evaluation of these stakeholders' role is necessary. We explore the regulation and design of retirement plans by incorporating features that characterize the future retirement landscape, such as the increasing burden of risk borne by the individual, and the potential involvement of market investors in the provision of retirement contracts. The implications of our findings encompass guidance for individuals in managing longevity risk, evaluation of the appeal of longevity risk exposure to investors, insights on contract design for the pension provider, and proposals to the policymaker on regulatory measures that foster a sustainable retirement environment.
    Date: 2017
  3. By: Joan Costa Font; Richard Frank; Katherine Swartz
    Abstract: Home equity is the primary self-funding mechanism for long term services and supports (LTSS). Using data from the relevant waves of the Health and Retirement Study (1996-2010), we exploit the exogenous variation in the form of wealth shocks resulting from the value of housing assets, to examine the effect of wealth on use of home health, unpaid help and nursing home care by older adults. We find a significant increase in the use of paid home health care and unpaid informal care but no effect on nursing home care access. We conduct a placebo test on individuals who do not own property; their use of LTSS was not affected by the housing wealth changes. The findings suggest that a wealth shock exerts a positive and significant effect on the uptake of home health and some effect on unpaid care but no significant effect on nursing home care.
    JEL: I18 J14
    Date: 2017–09
  4. By: Hollingsworth, Bruce; Ohinata, Asako; Picchio, Matteo; Walker, Ian
    Abstract: We investigate the impact of a policy reform, which introduced free formal personal care for all those aged 65 and above, on caregiving behaviour. Using a difference-indifferences estimator, we estimate that the free formal care reduced the probability of co-residential informal caregiving by 12.9%. Conditional on giving co-residential care, the mean reduction in the number of informal care hours is estimated to be 1:2 hours per week. The effect is particularly strong among older and less educated caregivers. In contrast to co-residential informal care, we find no change in extraresidential caregiving behaviour. We also observe that the average labour market participation and the number of hours worked increased in response to the policy introduction.
    Keywords: Long-term elderly care,ageing,financial support,informal caregiving,difference-in-differences
    JEL: C21 D14 I18 J14
    Date: 2017
  5. By: John Laitner (University of Michigan); Dan Silverman (Arizona State University)
    Abstract: This paper analyzes a prospective Social Security reform that a number of authors have suggested, namely a payroll tax cut targeted on households near retirement. Our approach uses simulations of a life-cycle model, which we estimate from panel data. The simulations study effects on the labor force participation of older households. This paper specifically attempts to improve estimates of the model by incorporating newly available data, using both retirement and wealth accumulation data, and employing a formulation that avoids local optima to isolate only global maxima. Despite the changes, our results are generally consistent with earlier work, though they point to slightly more limited policy benefits.
    Date: 2017–07
  6. By: Anne Case (Princeton University); Angus Deaton (Princeton University)
    Abstract: Building on our earlier research (Case and Deaton 2015), we find that mortality and morbidity among white non-Hispanic Americans in midlife since the turn of the century continued to climb through 2015. Additional increases in drug overdoses, suicides, and alcohol-related liver mortality—particularly among those with a high school degree or less—are responsible for an overall increase in all-cause mortality among whites. We find marked differences in mortality by race and education, with mortality among white non-Hispanics (males and females) rising for those without a college degree, and falling for those with a college degree. In contrast, mortality rates among blacks and Hispanics have continued to fall, irrespective of educational attainment. Mortality rates in comparably rich countries have continued their premillennial fall at the rates that used to characterize the United States. Contemporaneous levels of resources—particularly slowly growing, stagnant, and even declining incomes—cannot provide a comprehensive explanation for poor mortality outcomes. We propose a preliminary but plausible story in which cumulative disadvantage from one birth cohort to the next—in the labor market, in marriage and child outcomes, and in health—is triggered by progressively worsening labor market opportunities at the time of entry for whites with low levels of education. This account, which fits much of the data, has the profoundly negative implication that policies—even ones that successfully improve earnings and jobs, or redistribute income—will take many years to reverse the increase in mortality and morbidity, and that those in midlife now are likely to do worse in old age than the current elderly. This is in contrast to accounts in which resources affect health contemporaneously, so that those in midlife now can expect to do better in old age as they receive Social Security and Medicare. None of this, however, implies that there are no policy levers to be pulled. For instance, reducing the overprescription of opioids should be an obvious target for policymakers.
    JEL: I12
    Date: 2017
  7. By: Adam Szulc
    Abstract: The weights allowing calculation of life expectancy for a whole population as a weighted average of group-specific life expectancies are proposed. They are characterized by a minimum distance from the actual population shares that are different from those assumed in life tables. It is demonstrated how they may be obtained by means of constrained regression, using popular statistical/econometric software. The problem of negative solutions is also addressed. The empirical examples include longevity inequality calculations under various weighting systems. The data come from the Human Mortality Database and from Russia's regional statistics.
    Keywords: life expectancy, inequality, weighted indices
    JEL: I14 I18
    Date: 2017–09
  8. By: Canta, Chiara; Cremer, Helmuth
    Abstract: We study the design of long-term care (LTC) policy when children differ in their cost of providing informal care. Parents do not observe this cost, but they can commit to a "bequests rule" specifying a transfer conditional on the level of informal care. Care provided by high-cost children is distorted downwards in order to minimize the rent of low-cost ones. Social LTC insurance is designed to maximize a weighted sum of parents' and children's utility. The optimal uniform public LTC provision strikes a balance between insurance and children's utility. Under decreasing absolute risk aversion less than full insurance is provided to mitigate the distortion on informal care which reduces children's rents. A nonuniform policy conditioning LTC benefits on bequests provides full insurance even against the risk of having children with a high cost of providing care. Quite surprisingly the level of informal care induced by the optimal (uniform or nonuniform) policy always increases in the children's' welfare weight.
    Keywords: Long-term care; informal care; strategic bequests; asymmetric information
    JEL: H2 H5 I13 J14
    Date: 2017–09
  9. By: Yoon, Deok Ryong (Korea Institute for International Economic Policy); Rhee, Dong-Eun (Korea University)
    Abstract: Korea is aging at a rapid pace, causing concern about the resulting socio-economic impacts. This study analyzes the expected changes in the financial markets and macroeconomic changes resulting from aging and seeks possible policy measures to mitigate the negative impacts of these changes. The estimated changes will be useful information for all market players to prepare for the future socio-economic changes. The policy implications based on the analyses are as follows: First, explore new roles for monetary policies. Second, use labor market approaches and financial market approaches together to respond to aging. Third, employ strategies using the income account to maintain current account balance.
    Keywords: Financial Markets; Monetary Policy; Population Aging
    Date: 2017–08–22
  10. By: Katarzyna Mirecka; Izabela Styczyñska
    Abstract: The paper aims to assess the impact of selected elements of social harmonization on labor market performance in the European Union among two groups of workers—the total working population and the elderly. The aim is to examine whether upward changes in labor taxes affect employment, unemployment, and inactivity rates in the European Union.
    Keywords: employment of the elderly, minimum wage, social security contributions, labor tax, Social Europe
    JEL: J31 J32 C23 J38 J41 J61 H53 H55
    Date: 2017–04
  11. By: Jody Beauchamp; Valerie Cheh; Robert Schmitz; Peter Kemper; John Hall
    Abstract: PACE is a Medicare managed care benefit intended to prolong the independence and enhance the quality of life of frail beneficiaries by providing solutions to the service delivery problems encountered by those who remain living in the community.
    Keywords: PACE , Care for the Elderly , Quality of Care
    JEL: I
  12. By: Andriopoulou, Eirini; Karakitsios, Alexandros; Tsakloglou, Panos
    Abstract: The Greek crisis was the deepest and longest ever recorded in an OECD country in the postwar period. Output declined by over a quarter and disposable income by more than 40%, while the unemployment rate exceeded 27%. The paper explores the effects of the crisis on the level and the structure of aggregate inequality and poverty using the data of EU-SILC for the period 2007-2014. The results show that inequality rose but the magnitude of the change varies across indices. The recorded increases are larger when the indices used are relatively more sensitive to changes close to the bottom of the income distribution. Unlike claims often made in the public discourse, the elderly improved their relative position in the income distribution while there was substantial deterioration in the relative position of the enlarged group of the unemployed. The contribution of disparities between educational groups to aggregate inequality declined while that of disparities between socio-economic groups rose. All poverty indicators suggest that poverty increased substantially, especially when “anchored” poverty lines are used. Substantial changes are observed regarding the structure of poverty. Despite an increase in the population share of households headed by pensioners, their contribution to aggregate poverty declined considerably, with a corresponding increase in the contribution of households headed by unemployed persons. The changes are starker when distribution-sensitive poverty indices are utilized.
    Keywords: Greece,inequality,poverty,decomposition analysis
    JEL: D31 I31 I32
    Date: 2017
  13. By: Nabila Benmostefa (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)
    Abstract: L'organisation possède un patrimoine de connaissances. Le phénomène de vieillissement démographique prend de plus en plus de l'ampleur dans les sociétés modernes. Il occasionne lors du départ à la retraite un risque de perte massive des savoirs, souvent stratégiques pour l'organisation. Avec cette prise de conscience, la transmission intergénérationnelle des connaissances est devenue une issue pour protéger l'entreprise d'un déficit de connaissances. Par ailleurs, face aux exigences du marché et à un environnement économique complexe qui demande une capacité à fournir des réponses rapides, correctes et précises, la communauté de pratique est devenue un des moyens privilégiés des entreprises afin d'assurer le partage des connaissances. Étant donné que nous sommes en cours de réalisation de revue de littérature, l'objectif de cette communication est double. D'abord, nous présenterons le modèle d'élaboration du profil générationnel d'une organisation, proposé par Ermine (2010). C'est un moyen de composer autrement les générations. Il s'agit de caractériser la génération pas uniquement par son âge, mais également, par l'aspect social à partir des tendances structurantes communes (caractéristiques liées à l'individu, à l'organisation et à l'environnement). Ensuite, nous aborderons la question de transmission des connaissances entre générations dans les communautés de pratique. Tout en prenant en compte la qualité des liens entre individus et son impact sur le processus de partage.
    Keywords: Intergénérationnel,transmission des connaissances,communautés de pratique
    Date: 2016–06–27

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