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on Economics of Ageing |
| By: | Giesecke, Matthias |
| Abstract: | I estimate the effect of retirement on mortality, exploiting two discontinuities at age-based eligibility thresholds for pension claiming in Germany. The analysis is based on unique social security records that document the age at death for the universe of participants in the German public pension system. Using variation from bunching of retirements at age-based eligibility thresholds, I demonstrate that retirement can have both mortality-decreasing and mortality-increasing effects, depending on the group of retirees who comply to eligibility at each threshold. To reconcile heterogeneous effects with likewise mixed results from the literature I provide evidence that the retirement-mortality nexus is driven by the activity change at retirement. |
| Keywords: | retirement,mortality,age-based eligibility thresholds,regression discontinuity design |
| JEL: | H55 I12 J14 J26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:800&r=all |
| By: | Korfhage, Thorben |
| Abstract: | In this paper, I estimate a dynamic structural model of labor supply, retirement, and informal care supply, incorporating labor market frictions and the German tax and benefit system. I find that informal elderly care has adverse and persistent effects on labor market outcomes and therefore negatively affects lifetime earnings, future pension benefits, and individuals' well-being. These consequences of caregiving are heterogeneous and depend on age, previous earnings, and institutional regulations. Policy simulations suggest that, even though fiscally costly, public long-term care insurance can offset the personal costs of caregiving to a large extent - in particular for low-income individuals. |
| Keywords: | long-term care,informal care,long-term care insurance,labor supply,retirement,pension benefits,structural model |
| JEL: | I18 I38 J14 J22 J26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:813&r=all |
| By: | Hans Fehr; Maurice Hofmann |
| Abstract: | We study the interplay between tenure decisions, stock market investment and the public social security system. Housing equity not only serves a dual purpose as a consumption good and as an asset, but also provides insurance to buffer various risks in retirement. Our life cycle model captures these links in order to explain why homeownership in Germany is so low. Our simulation results indicate that the public long-term care as well as the pension system reduce the homeownership rate in Germany by 10-15 percentage points. |
| Keywords: | homeownership, stock market participation, life-cycle models, long-term care |
| JEL: | C61 G11 H55 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7783&r=all |
| By: | van Dalen, Harry (Tilburg University, School of Economics and Management); Henkens, C.J.I.M. (Tilburg University, School of Economics and Management); Oude Mulders, Jaap |
| Abstract: | Governments increasingly focus on extending working lives by raising public pension ages and in some cases by linking pension ages to changes in the life expectancy. This study offers novel insights into how employers perceive such reforms and their consequences for their organization. A survey among employers (N = 1,208) has been carried out in 2017 to examine their reactions to a recent pension reform in the Netherlands. Statistical analyses are performed to examine employers’ support for the current policy of linking the public pension age to changes in average life expectancy, as well as the support for 2 alternative policies that are often considered in public policy debates: a flexible public pension age; and a lower public pension age for workers in physically demanding jobs. Results show that particularly employers in construction and industry are extremely concerned about the physical capability of employees to keep on working until the public pension age. These concerns are the driving forces behind the lack of support for linking public pension ages to changes in average life expectancy (22% support) and the overwhelming support for a lower public pension age for physically demanding jobs (82%). The introduction of a flexible pension age (78% support) is not firmly related to employers’ concerns about capability or employability of older workers. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:aeddd7fb-7cbc-4853-b7a7-cfa69b2e17c0&r=all |
| By: | Yang, Feng-An; Chang, Hung-Hao |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291292&r=all |
| By: | Margherita Borella; Mariacristina De Nardi; Fang Yang |
| Abstract: | In the U.S., both taxes and old age Social Security benefits depend on one's marital status and tend to discourage the labor supply of the secondary earner. To what extent are these provisions holding back female labor supply? We estimate a rich life-cycle model of labor supply and savings for couples and singles using the Method of Simulated Moments (MSM) on the 1945 and 1955 birth-year cohorts and we use it to evaluate what would happen without these provisions. 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. Eliminating marriage-related provisions drastically increases the participation of married women over their entire life cycle, reduces the participation of married men after age 55, and increases the savings of couples in both cohorts, including the later one, which has similar participation to that of more recent generations. If the resulting government surplus were used to lower income taxation, there would be large welfare gains for the vast majority of the population. |
| JEL: | E21 H2 J22 J31 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26097&r=all |
| By: | Erik Hernæs; Steinar Strøm; Tao Zhang |
| Abstract: | We investigate the impact on pension take-up and labour supply of a broad Norwegian pension reform. Focussing on the long term impact, we use a structural discrete choice model estimated on data for first groups to become eligible for the new pension, accounting for the opportunity cost of retiring early. A majority of the individuals combine take-up of pension with working. This is particular the case for individuals with lower education. The estimated model explains observed behaviour rather precisely, in particular for those who retire entirely and for all choices made by individuals with higher education. The estimated model is applied in an out of sample prediction for the cohort born in 1950. Again, the model predicts rather accurately the fraction that retires entirely and the choices made by the higher educated. Two policy simulations, an increase in longevity and tax on pension income equal to tax on labour income, implies lower take up of pensions and more people working. The response to the longevity adjustment compensates less than half of the reduction of the annual pension level in the adjustment, which is designed to mimic the increase in the longevity over the next 20 years. |
| Keywords: | pension reform, labor supply |
| JEL: | D10 H55 J26 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7723&r=all |
| By: | Feld, Jan; Noy, Shakked |
| Abstract: | Save More Tomorrow is a retirement savings plan developed by Richard Thaler and Shlomo Benartzi that incorporates insights from Behavioural Economics. In this paper, we describe how the plan works and discuss how it can be used to increase retirement savings in New Zealand. |
| Keywords: | Retirement savings, Save More Tomorrow, Behavioural Economics, New Zealand, |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:vuw:vuwecf:8245&r=all |
| By: | Kim, Ayoung; Waldorf, Brigitte S. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291287&r=all |
| By: | Abigail Marie Rapa |
| Abstract: | Since Malta’s accession to the European Union, its labour market has undergone substantial shifts which have resulted in an increase in activity among the working age population. Using a cohort model of labour force participation this note assesses developments in the participation rate of males and females since 2000 and forecasts the overall participation rate for the medium term while taking gender and age-period-cohort factors into account. Using a dynamic cohort approach and under the assumption of no further policy change, the author estimates that the participation rate of those aged between 15 and 64 will continue to increase, reaching 80.4% in 2030. The continuous influx of foreign migrant workers and enacted pension reforms are estimated to boost the participation rate by 4.1 percentage points by 2030, which is equivalent to half of the projected increase in the participation rate. |
| JEL: | J11 J21 J26 F22 |
| URL: | http://d.repec.org/n?u=RePEc:mlt:ppaper:0419&r=all |
| By: | Bozio, Antoine (Paris School of Economics); Breda, Thomas (Paris School of Economics); Grenet, Julien (Paris School of Economics) |
| Abstract: | We study the earnings responses to three large increases in employer Social Security contributions (SSCs) in France. We find evidence of full pass-through to workers in the case of a strong and salient relationship between contributions and expected benefits. By contrast, we find limited pass-through of employer SSCs to wages for reforms that increased SSCs with no tax-benefit linkage. Together with a meta-analysis of the literature, we interpret these results as evidence that tax-benefit linkage and its salience matter for incidence, a claim long made by the literature but not backed by direct empirical evidence to date. |
| Keywords: | tax incidence, payroll tax, social security contributions, tax-benefit linkage |
| JEL: | H22 H55 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12502&r=all |