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on Economics of Ageing |
| By: | Svend E. Hougaard Jensen; Thorsteinn Sigurdur Sveinsson; Gylfi Zoega |
| Abstract: | We find that segments of society who have shorter life expectancy can expect a lower retirement income and lifetime utility due to the longevity of other groups participating in the same pension scheme. Linking retirement age to average life expectancy magnifies the negative effect on the lifetime utility of those who suffer low longevity. Furthermore, when the income of those with greater longevity increases, those with shorter life expectancy become even worse off. Conversely, when the income of those with shorter life expectancy increases, they end up paying more into the pension scheme, which benefits those who live longer. The relative sizes of the low and high longevity groups in the population determine the magnitude of these effects. We calibrate the model based on data on differences in life expectancy of men and women and find that males suffer from a 10 percent drop in the amount of pension benefits from being forced to pay into the same scheme as females. |
| Keywords: | longevity, pension age, retirement, inequality |
| JEL: | E21 E24 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7704&r=all |
| By: | Lee, Ronald D. (University of California, Berkeley) |
| Abstract: | Paul Samuelson made a series of important contributions to population theory for humans and other species, evolutionary theory, and the theory of age structured life cycles in economic equilibrium and growth. The work is highly abstract but much of it was intended to illuminate issues of compelling policy importance, such as declining fertility and population aging. While his work in population economics has been very influential, his work in population and evolution appears to have been largely overlooked, perhaps because he seldom published in demographic journals or went to population meetings. Here I discuss his many contributions in all these areas, but give particular attention to demographic aspects of his famous work on overlapping generation models, social security systems, and population growth. |
| Keywords: | Samuelson, overlapping generations, social security, population growth rate, reproductive value, population cycles, intergenerational transfers, predator-prey, altruism |
| JEL: | J11 J18 Q57 H55 D64 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12442&r=all |
| By: | Justin Falk; Nadia Karamcheva |
| Abstract: | Policymakers are weighing options that would change the retirement system for federal workers by shifting more of their deferred compensation from the defined benefit plan toward the defined contribution plan, called the Thrift Savings Plan (TSP). We use administrative longitudinal data on federal workers’ demographics, compensation, and TSP behavior to estimate the effects of an employer match and plan default options on workers’ TSP savings behavior and the cost of employer contributions. We rely primarily on two sources of exogenous variation stemming from policy changes |
| JEL: | E21 E27 J26 J32 |
| Date: | 2019–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:wpaper:55447&r=all |
| By: | Sullivan, Riley (Federal Reserve Bank of Boston) |
| Abstract: | In hundreds of communities across northern New England, the population is aging rapidly and becoming smaller. The entire country is aging, but northern New England stands out: Among the populations of all US states, those of Maine, New Hampshire, and Vermont have the top-three highest median ages, respectively. The situation is even more extreme in northern New England’s rural counties, where the populations of the smallest towns generally are substantially older than those of the rest of the region. These communities also have seen the slowest, or even negative, population growth over the last three decades. As the populations of the rural regions become older and smaller, policymakers are concerned about the ability of the local communities to maintain their labor force, sustain local businesses and the tax base, and provide care for the growing number of senior residents. This regional brief explores changes in the size and age of the populations of the cities and towns in the three northern New England states. It also considers the role immigration plays in sustaining the stability and growth of those populations. |
| Keywords: | New England; rural; immigration; NEPPC |
| Date: | 2019–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbrb:2019_002&r=all |
| By: | Gao, Yanyan; Qu, Zhaopeng |
| Abstract: | In this paper, we test the conventional wisdom in developing countries of ‘more children, more happiness’ by exploiting the cohort and provincial variations of elderly parents exposed to the one-child policy in China. Using nationally representative survey data from the 2015 China Health and Retirement Longitude Survey, the results from both the ordinary least square and two-stage least square methods find that more children can enhance elderly parents’ subjective well-being (SWB) measured with either life satisfaction or depression mood. The effect is channelled by raising their satisfaction with children and receiving in-kind transfers from children. The heterogeneity analysis also shows that the effect of children on parents’ life satisfaction is heterogenous to sex composition, first-birth gender, and parents' age. Our study provides new causal evidence of the impact of fertility on elderly parents’ SWB from a developing economy. |
| Keywords: | children,happiness,life satisfaction,elderly parents,depression,China |
| JEL: | J13 J14 I18 I31 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:366&r=all |
| By: | Avram, Silvia; Brewer, Mike; Fisher, Paul; Fumagalli, Laura |
| Abstract: | We study the volatility of individual- and household-level income in the UK between 2009 and 2017 using data from a large longitudinal household panel survey. The volatility of earnings for the working-age has fallen in this period, largely due to a fall in the prevalence of large negative earnings shocks. For older aged individuals, we also find a large fall in the volatility of private income, mainly as a result of a fall in large positive income shocks. The tax and benefit system significantly reduces volatility, especially for household containing older individuals. We find evidence that the tax and benefit system has become less well equipped to counteract swings in labour income, but the most important reason why disposable income volatility has fallen over this period is changes to the volatility of employment.  |
| Date: | 2019–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:ese:ukhlsp:2019-07&r=all |
| By: | Agar Brugiavini (Department of Economics, University Of Venice Cà Foscari); Raluca Elena Buia (Department of Economics, University Of Venice Cà Foscari); Matija Kovacic (Department of Economics, University Of Venice Cà Foscari); Cristina Elisa Orso (Department of Economics, University Of Verona) |
| Abstract: | In this paper, we investigate whether exposure to adverse experiences during childhood such as physical and emotional abuse affects a set of health and socio-economic outcomes across the lifespan using recent European data from SHARE (The Survey of Health, Ageing and Retirement in Europe). The novelty of our approach consists in exploiting the recently published data on adverse childhood experiences for 19 SHARE countries, which enables us to account for country-specific heterogeneity and investigate the long-run effects of exposure to early-life adverse circumstances on different adult outcomes. Our results highlight a negative long-term effect of exposure to adverse childhood experiences -ACEs on risky behaviour such as smoking, as well as on socio-economic outcomes like unemployment and family dissolution. |
| Keywords: | Adverse Childhood Experiences, Smoking Behaviour, Unemployment, Family Dissolution |
| JEL: | H4 I12 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2019:18&r=all |