nep-age New Economics Papers
on Economics of Ageing
Issue of 2017‒12‒03
ten papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Labour Supply and Informal Care Supply: The Impacts of Financial Support for Long-Term Elderly Care By Bruce Hollingsworth; Asako Ohinata; Matteo Picchio; Ian Walker
  2. Careful in the crisis?Determinants of older people's informal care receiptin crisis-struck European countries By Costa-i-Font, Joan; Karlsson, Martin; Øien, Henning
  3. Means-Testing Federal Health Entitlement Benefits By Andrew Samwick
  4. The Fiscal Implications of Canadians’ Working Longer By William B.P. Robson; Colin Busby; Aaron Jacobs
  5. Marriage-Related Policies in an Estimated Life-Cycle Model of Households' Labor Supply and Savings for Two Cohorts By Margherita Borella; Mariacristina De Nardi; Fang Yang
  6. Education gradient in well-being late in life: the case of China By Agar Brugiavini; Danilo Cavapozzi; Yao Pan
  7. A Holistic Health Care of Thai?s Elderlies in Nursing Home By WIRAWAN KLAYHIRAN
  8. Early-Life Correlates of Later-Life Well-Being: Evidence from the Wisconsin Longitudinal Study By Andrew E. Clark; Tom Lee
  9. Public goods, role models and "sucker aversion": the audience matters By Attanasi, Giuseppe; Dessí, Roberta; Moisan, Frederic; Robertson, Donald
  10. Whistle While You Work: Job Insecurity and Older Workers’ Mental Health in the United States By Italo A. Gutierrez; Pierre-Carl Michaud

  1. By: Bruce Hollingsworth (Lancaster University, United Kingdom); Asako Ohinata (Department of Economics, University of Leicester, United Kingdom; CentER, Tilburg University, The Netherlands.); Matteo Picchio (Department of Economics and Social Sciences, Marche Polytechnic University, Ancona, Italy; Sherppa, Ghent University, Belgium; IZA, Germany.); Ian Walker (Management School, Lancaster University, United Kingdom; IZA, Germany.)
    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 extra-residential 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: 2017–11
  2. By: Costa-i-Font, Joan; Karlsson, Martin; Øien, Henning
    Abstract: Macroeconomic downturns can have an important impact on the receipt of informal and formal long-term care, since recessions increase the number of unemployed and affect net wealth. This paper investigates how the market for informal care changed during and after the Great Recession in Europe, with particular focus on their various determinants. We use data from the Survey of Health, Aging and Retirement in Europe, which includes a rich set of variables covering waves before and after the Great Recession. We find evidence of an increase in the availability of informal care after the economic downturn when controlling for year and country fixed effects. This trend is mainly driven by changes in care provision of individuals not cohabiting with the care recipient. We also find evidence of several determinants of informal care receipt changing during the crisis { such as physical needs, personal wealth and household structures.
    Keywords: long-term care; informal care; great recession; downturn; old age dependency.
    JEL: I18 J1
    Date: 2016–11–09
  3. By: Andrew Samwick
    Abstract: Recent federal legislation has linked the price paid for health insurance benefits to current income. Under the Patient Protection and Affordable Care Act of 2010, individuals and families with income as high as 400 percent of the federal poverty level are eligible for premium tax credits that limit their health insurance premiums to under 10 percent of their income. Under the Medicare Modernization Act of 2003, higher-income beneficiaries face income-related premiums over three times the standard premium for Part B coverage. For workers at or near retirement age, means-testing based on current income provides an incentive for early retirement, dissaving, and income manipulation, raising concerns about the efficiency of such means-testing. Further, current income is subject to short-term fluctuations, making it a noisy predictor of ability to pay. Using the Health and Retirement Study and linked Social Security earnings histories, this paper introduces a measure of lifetime income that compares favorably to current income as a basis for means-testing. It offers less short-term variation in premiums while improving incentives for pre-retirement work and saving.
    JEL: H51 I13
    Date: 2017–11
  4. By: William B.P. Robson (C.D. Howe Institute); Colin Busby (C.D. Howe Institute); Aaron Jacobs (C.D. Howe Institute)
    Abstract: Canada’s greying workforce will spell big fiscal trouble for future taxpayers, according to a new C.D. Howe Institute report. In “The Fiscal Implications of Canadians’ Working Longer,” authors William Robson, Colin Busby, and Aaron Jacobs find that demographic change is squeezing the budgets of Canadian governments—increasing the costs of public programs and eroding the tax base as the growth in traditional working-age people flatlines.
    Keywords: Health, Fiscal and Tax Policy
    JEL: H5 J1
    Date: 2017–11
  5. By: Margherita Borella; Mariacristina De Nardi; Fang Yang
    Abstract: In the U.S., both taxes and old age Social Security benefits explicitly depend on one's marital status. We study the effects of eliminating these marriage-related provisions on the labor supply and savings of two different cohorts. To do so, we estimate a rich life-cycle model of couples and singles using the Method of Simulated Moments (MSM) on the 1945 and 1955 birth-year cohorts. Our model matches well the life cycle profiles of labor market participation, hours, and savings for married and single people and generates plausible elasticities of labor supply. We find that these marriage-related provisions reduce the participation of married women over their life cycle, the participation of married men after age 55, and the savings of couples. These effects are large for both the 1945 and 1955 cohorts, even though the latter had much higher labor market participation of married women to start with.
    JEL: E21 H3 H31
    Date: 2017–10
  6. By: Agar Brugiavini (Department of Economics, University Of Venice Cà Foscari); Danilo Cavapozzi (Department of Economics, University Of Venice Cà Foscari; Netspar); Yao Pan (Department of Economics, University Of Venice Cà Foscari)
    Abstract: We draw data from the China Health and Retirement Longitudinal Study(CHARLS)to investigate the education gradient in the current well-being of a representative sample of the Chinese population aged 45 or over. We analyse how the education gradient combines with the marked differences in the social policies implemented in rural and urban China.
    Keywords: Education, multidimensional well-being index, rural and urban China
    JEL: J14 I31 I24
    Date: 2017
  7. By: WIRAWAN KLAYHIRAN (Boromrajajonani College of Nursing, Ratchaburi)
    Abstract: AbstractPurpose: To describe a holistic health care of Thai?s elderlies in nursing home about holistic health care approach in four dimensions included physical health care, mental health care, social health care and spiritual health care. . Design and Methods: Qualitative research with a purposive sample of Thai?s elderlies (n = 15) and Caregivers (n = 3), using in-depth interview to explore rich qualitative data, using content and thematic analysis were conducted. Research ethic was approved by human subjects institutional review board, informed consent was obtained in all key informants.Results: There were 4 key findings as follows: Firstly, physical health care means focusing on hygiene care with love from caregivers like they got it from descendant. Their purposes were clean and comfort body. Secondly, mental health care means they had someone who was ready to be a listener and a good friend in lonely time. Thirdly, social health care means they can see visitors in regularly that improve to get better from a family loss feeling problems. Finally, spiritual health care means they can back their home and enjoy their families in the end of life with dignity. Implications: Nurses and nursing students may apply these data to understand better holistic health care approach of Thai?s elderlies in nursing home. In nursing curriculum may use these data developed learning outcomes of nursing students when they learn this topic. Nowadays, this issue is an important learning subject for young generation because they are a future nurses in aging society of Thailand.
    Keywords: holistic health care, elderly, nursing home
    Date: 2017–10
  8. By: Andrew E. Clark; Tom Lee
    Abstract: We here use data from the Wisconsin Longitudinal Study (WLS) to provide one of the first analyses of the distal (early-life) and proximal (later-life) correlates of older-life subjective well-being. Unusually, we have two distinct measures of the latter: happiness and eudaimonia. Even after controlling for proximal covariates, outcomes at age 18 (IQ score, parental income and parental education) remain good predictors of well-being over 50 years later. In terms of the proximal covariates, mental health and social participation are the strongest predictors of both measures of well-being in older age. However, there are notable differences in the other correlates of happiness and eudaimonia. As such, well-being policy will depend to an extent on which measure is preferred.
    Keywords: life-course, well-being, eudaimonia, health, happiness
    JEL: I31 I38
    Date: 2017–11
  9. By: Attanasi, Giuseppe; Dessí, Roberta; Moisan, Frederic; Robertson, Donald
    Abstract: Intergenerational interactions play an important part in society with older generations often acting as role models that influence younger ones. We investigate in a public good experiment how the behavior of more experienced and knowledgeable players (graduate students) is affected when they are informed that some of their personal and behavioral characteristics will be transmitted to future first-year undergraduates (enrolling the following year) playing the same game at the same university. In the "information" treatment, the history of behavior is transmitted with some personal characteristics (e.g. age and gender). In the "photo" treatment, a photo is also transmitted. Despite the absence of any monetary linkage between generations, our results show a significant effect of visibility by the future audience on initial contributions and dynamic behavior. Contrary to previous findings in the literature, contributions are lower in the presence of such personal identification. We explain this surprising negative effect by a "sucker aversion" bias according to which people become more sensitive to being perceived as exploited by their peers. We argue that the nature of the "audience" matters in reaching such an undesirable outcome.
    Date: 2017–10
  10. By: Italo A. Gutierrez; Pierre-Carl Michaud
    Abstract: We estimate the effects of job insecurity on older workers’ health outcomes using an instrumental variables approach which exploits downsizing and state-industry level changes in employment. We provide evidence that job insecurity, as measured by the self-reported probability of job loss, increases stress at work, the risk of clinical depression and lowers selfreported health status. IV estimates are much larger than OLS estimates which we interpret as evidence that job insecurity which is outside the control of workers may have much larger effects on mental health. These findings suggest that employers ought to consider actions to offset the detrimental health effects of reducing personnel on their remaining (older) workers and pay attention at the stress that industry level changes in economic conditions may have on workers.
    Keywords: Older workers,Job insecurity,Employer downsizing,Health outcomes,
    JEL: I12 M51
    Date: 2017–11–15

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