|
on Economics of Ageing |
| By: | Laura D. Quinby; Jean-Pierre Aubry; Alicia H. Munnell |
| Abstract: | One-quarter of state and local government employees Ð approximately 6.5 million workers Ð are not covered by Social Security on their current job. To remain outside of Social Security, federal law requires that these employees be covered by an employer pension of sufficient generosity. Since many public pensions have grown less generous in recent years and a few plans could exhaust their assets, the question is whether state and local plans currently satisfy the federal standards. This brief, which is based on a recent study, attempts to answer that question.1 The first step is to determine whether the retirement plans for noncovered state and local employees satisfy the Òletter of the law.Ó Specifically, do they meet the IRS ÒSafe HarborÓ parameters, and do these parameters provide income equivalent to Social Security at age 67? Even if the plans meet these requirements, however, noncovered state and local employees still may not receive Social Security-equivalent resources because they face long vesting periods and may not get full cost-of-living adjustments (COLAs) Ð albeit, they can claim full benefits earlier than under Social Security. Thus, the second step requires incorporating vesting, the COLA, and retirement ages to produce lifetime retirement wealth. The final step involves addressing the additional complication caused by low funded ratios in a number of pensions for noncovered state and local employees. The discussion proceeds as follows. The first section presents a brief history of the federal regulations that affect noncovered workers. The second section compares the plans currently offered to noncovered workers to the Safe Harbor requirements. The third section examines whether the requirements provide Social Security-equivalent benefits at age 67. The conclusions are that virtually all plans satisfy the Safe Harbor provisions and that participation in a Safe Harbor plan produces about the same level of benefits at age 67 as Social Security. The fourth section shifts from benefits at 67 to a lifetime-wealth measure that reflects differences in vesting requirements, COLAs, and normal retirement ages. This wealth-based generosity test suggests that 43 percent of noncovered public pension plans fall short of Social Security for a significant minority of new hires. The fifth section addresses the implications for valuing benefits of underfunded pensions and potential exhaustion of assets in a few plans. The final section concludes that the issues regarding generosity could be eliminated by extending mandatory Social Security coverage to state and local workers, but the question of how to value underfunded benefits remains a challenge. |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:crr:slpbrf:slp77&r= |
| By: | Alicia H. Munnell; Gal Wettstein; Wenliang Hou |
| Abstract: | Unlike defined benefit pensions that provide participants with steady benefits for as long as they live, 401(k) plans and Individual Retirement Accounts (IRAs) provide little guidance on how to turn accumulated assets into income. As a result, retirees have to decide how much to withdraw each year and face the risk of either spending too quickly and outliving their resources or spending too conservatively and consuming too little. They also must consider how to invest their savings after retirement. These are difficult decisions. Better strategies are available that would ensure a higher level of lifetime income, reduce the likelihood that people will outlive their resources, and alleviate some of the anxiety associated with post-retirement investing. Workers could purchase an immediate annuity that pays a fixed amount throughout their lives, typically starting at age 65. Or they could purchase an advanced life deferred annuity, which requires a smaller share of accumulated assets and begins payments at a later age, like 85. Alternatively, they could use their assets to delay claiming Social Security, effectively buying more inflation-indexed annuity income. This brief, which is based on a recent paper, compares the level of lifetime utility generated by these three annuitization approaches. In all cases, the assumption is that the strategy is incorporated directly into 401(k) plans as the default drawdown option. The discussion proceeds as follows. The first section summarizes the case for commercial annuities and the reasons for their lackluster demand. The second section describes the ÒSocial Security bridgeÓ option whereby participants would automatically use their 401(k) balances to pay themselves an amount equal to their Social Security benefit so that they can delay claiming. The third section describes the approach used to compare the three lifetime income strategies: immediate annuities, deferred annuities, and the Social Security bridge option. The fourth section presents the results. The final section concludes that the Social Security bridge provides the best outcome for households in the middle of the wealth distribution and remains competitive for those at the 75th percentile of the wealth distribution. Introducing such an option as the default in 401(k) plans would require no legislative or institutional changes and would greatly enhance the welfare of plan participants. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2021-01&r= |
| By: | Gustafsson, Björn Anders (University of Gothenburg); Nivorozhkina, Ludmila (Rostov State Economic University); Wan, Haiyuan (Beijing Normal University) |
| Abstract: | The incidence of working for earnings beyond the normal pension age of 55 for females and 60 for males in urban China and Russia is investigated using micro-data for 2002, 2013, and 2018. Estimated logit models show that, in both countries, the probability of working after normal retirement age is positively related to living with a spouse only, being healthy, and having a higher education level but is negatively associated with age, the scale of pension and, in urban China, being female. We find that seniors in urban Russia are more likely to work for earnings than their counterparts in China. Two possible reasons for this difference are ruled out: cross-country differences in health status and the age distribution among elderly people. We also show that working beyond the normal retirement age has a much stronger negative association with earnings in urban China than in urban Russia. This is consistent with the facts that the normal retirement age is strictly enforced in urban China and seniors attempting to work face intensive competition from younger migrant workers. We conclude that China can learn from Russia that it has a substantial potential for increasing employment among healthy people under 70. |
| Keywords: | retirement, older people, employment, China, Russia, labour market |
| JEL: | E24 J14 J J3 P52 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14294&r= |
| By: | François Facchini (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In 2019, Jean-Paul Delevoye and the "Conseil d'Orientation des Retraites" (COR) are proposing a reform of the French pension system. This reform wants to create a universal scheme and a pension system by points. This article is a critique of this project. It argues that it does not solve the five major problems of the French pension system implemented in 1946. French system is a pay-as-you go system funded by employees' contributions and a balancing contribution paid by enterprises in the sector, calculated in proportion. A pay-as-you go system impose, firstly, a social cost on each renegotiation of retirement conditions. Second, it does not take into account the diversity of individual, family and economic situations of each citizen. Thirdly, it crowds out all alternative pension schemes. Fourthly, it perpetuates an inefficient pension financing model which, fifthly, is the cause of major inequalities in retirement between generations. A point system does not solve any of these problems. It is urgent in these conditions to give more freedom to each individual to find the pension scheme that best suits him or her. Market solutions in this new architecture could take their full place in the debate that is taking place today in France in a context of social and political insurrection. |
| Keywords: | retraite,France,système de retraite à point,capitalisation,répartition,crise |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03195335&r= |
| By: | Olivia S. Mitchell; Robert L. Clark; Annamaria Lusardi |
| Abstract: | We examine respondents in the Health and Retirement Study (HRS) to observe how their financial situations unfolded as they aged. We focus on low income older adults and follow them over time to identify the factors associated with having low income at baseline and thereafter. We find that (a) real income remained relatively stable as individuals approach and enter retirement, and progress through their retirement years, and (b) labor force participation declined and thus earnings became less important with age, while Social Security and retirement savings rose as a proportion of annual income. |
| JEL: | D14 G53 I38 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28721&r= |
| By: | Péter Hudomiet; Robert J. Willis |
| Abstract: | This paper analyzes how computerization affected the labor market outcomes of older workers between 1984 and 2017. Using the computerization supplements of the Current Population Survey (CPS) we show that different occupations were computerized at different times, older workers tended to start using computers with a delay compared to younger workers, but computer use within occupations converged to the same levels across age groups eventually. That is, there was a temporary knowledge gap between younger and older workers in most occupations. We estimate how this knowledge gap affected older workers’ labor market outcomes using data from the CPS and the Health and Retirement Study. Our models control for occupation and time fixed effects and in some models; we also control for full occupation-time interactions and use middle aged (age 40-49) workers as the control group. We find strong and robust negative effects of the knowledge gap on wages, and a large, temporary increase in transitions from work to non-participation, consistent with a model of creative destruction in which the computerization of jobs made older workers’ skills obsolete in birth cohorts that experienced computerization relatively late in their careers. We find larger effects on females and on middle-skilled workers. |
| JEL: | J14 J24 J26 J31 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28701&r= |
| By: | Alicia H. Munnell; Anqi Chen |
| Abstract: | A hot topic these days is how COVID-19 and the ensuing recession have affected retirement. The surprising answer may be Ònot very much.Ó On the benefit side, Social Security payments continue to go out each month, and 401(k) balances appear relatively unaffected. On the income side, the impact on Social SecurityÕs finances has been minimal, and employee and employer 401(k) contributions remain relatively steady. In terms of the labor market, recessions inevitably increase unemployment, but this recession has not hurt older workers more than other groups. The conclusion that COVID is not primarily a retirement story does not mean that all is right with the world. The problems confronting the retirement system before the pandemic remain. Social Security continues to face a 75-year deficit and the depletion of the trust fund in the mid-2030s. Employer plans continue to face inadequate balances, a major coverage gap, no decumulation mechanism, and low interest rates. And older workers continue to face difficulties in finding new jobs, causing many to retire too early. Most important, the reason for COVIDÕs lack of impact on retirement is that people who have the least have borne the brunt of the downturn. The discussion proceeds as follows. The first section summarizes Social Security finances before the pandemic and the actuariesÕ reassessment of the programÕs financial status in the wake of COVID. The second section turns to employer-sponsored plans, summarizing the challenges before COVID and examining adverse developments that could have happened but did not. The third section shifts to the labor market to show that while older workers have suffered, they have not been hurt disproportionately and appear as able to work from home as their younger counterparts. On the other hand, those with the least education Ð workers least likely to have a 401(k) Ð have borne the brunt of the recession. The final section concludes that COVID is not a retirement story, but the pre-COVID weaknesses in the retirement system remain. In addition, the continued decline in real interest rates has made it even more difficult to save for retirement, and the increased stress on state and local government finances makes it more difficult to fund public sector defined benefit plans. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2021-04&r= |
| By: | Geoffrey T. Sanzenbacher |
| Abstract: | Nontraditional jobs Ð defined here as those without health and retirement benefits Ð often concern policymakers. They worry that the lack of health insurance leaves workersÕ finances vulnerable to health shocks, while the lack of retirement plans will stunt savings. On the other hand, workers might use these jobs only infrequently to fill the gap between periods of more traditional employment, or they could use them to extend their careers past typical retirement ages. And, in any case, such workers may have access to benefits from family members or public programs. So, the question is: should we worry about these jobs? To answer the question, this brief synthesizes the findings of four recent Center studies on nontraditional jobs and older workers, a group that could be particularly vulnerable without employer benefits. The discussion proceeds as follows. The first section introduces the definition of nontraditional jobs used in this body of research. The second section discusses nontraditional jobs for workers approaching retirement Ð i.e., in their 50s and early 60s. It focuses on how frequently these jobs are used, whether workers are able to get health and retirement benefits elsewhere, and whether pressures like automation and trade increase the prevalence of these jobs. The third section turns to a different group of older workers Ð those of retirement age, i.e., in their mid- to late-60s. It examines whether the workers in this age group who use nontraditional jobs to extend their careers improve their financial situation. The final section concludes that some concern over nontraditional jobs is warranted. Most workers approaching retirement in these jobs use them frequently and, though they often find health insurance, they generally lack a viable alternative to save for retirement. However, workers in their 60s who switch to nontraditional jobs do improve their financial situation. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2020-17&r= |
| By: | Gohl, Niklas (DIW Berlin and Potsdam University); Haan, Peter (DIW Berlin and FU Berlin); Kurz, ElisabethWeinhardt, Felix (DIW Berlin, CESifo, IZA, CEP/LSE) |
| Abstract: | In this paper we present a life-cycle model with human capital investment during working life through training and provide a novel empirical test of human capital theory. Using a sizable pension reform which shifts the retirement age between two adjacent cohorts by three years, we document causal evidence that an increase in the working life increases investment into human capital through training. We estimate this effect using a regression discontinuity design based on a large sample from the German microcensus. We discuss and test further predictions regarding the relation between initial schooling, training, and the reform effect and show that only individuals with a college degree increase human capital investment. Our results speak to a large class of human capital models as well as policies extending or shortening working life. |
| Keywords: | human capital; retirement policies; RDD; |
| JEL: | J24 J26 H21 |
| Date: | 2019–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:212&r= |
| By: | Matthew S. Rutledge; Gal Wettstein |
| Abstract: | Policymakers and the media have expressed concern that nontraditional jobs lack stability and financial security. Indeed, having a nontraditional job Ð defined here as a job without employer health and retirement benefits Ð during the prime saving years of ages 50-61 is associated with less retirement security. But nontraditional jobs need not be Òbad jobsÓ for all workers. Compared to traditional work, they may be a better fit for those in their 60s looking to prolong their careers by offering less stress and more flexibility. This brief, based on a recent study, examines how workers use nontraditional jobs after age 62, relying on data from the Health and Retirement Study linked to administrative earnings. It explores two questions. First, are workers in their early 60s who are underprepared for retirement more likely to use nontraditional jobs? Second, are such jobs a useful alternative to traditional work for those seeking to enhance their retirement security? The discussion proceeds as follows. The first section introduces the data and the sample. The second section describes the analytic approach, which follows three groups of workers with different employment patterns in their 60s. The third section compares the retirement security of these three groups at ages 61-62 and examines the changes they experience in retirement security by ages 67-68. The final section concludes that the workers who start out less prepared for retirement are not more likely to switch to nontraditional work in their mid-60s. But underprepared workers who do switch improve their retirement security as much as those who stay in traditional work. These results suggest that extended careers are financially beneficial, even in jobs without health and retirement benefits. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2020-15&r= |
| By: | Regina T. Riphahn; Rebecca Schrader |
| Abstract: | We study causal effects of two early retirement reforms. Reform 1 (NRA) increased normal retirement age stepwise from 60 to 63. Simultaneously, it became possible to use early retirement with benefit discounts. Reform 2 (ERA) increased the age of early retirement stepwise from 60 to 63. We investigate behavioral responses to the reforms using administrative data and difference-in-differences strategies. We find strong and significant causal effects of both reforms. Individuals postponed retirement, stayed employed longer, postponed unemployment, and shifted to alternative pathways into retirement. The overall use of the retirement system declined by about 1.5 and 2 months per person after each of the two reforms. Individuals with low pension wealth and those who were affected immediately by the reform responded more strongly. |
| Keywords: | early retirement, program substitution, labor force participation, causal effects, difference-in-differences, effect heterogeneity |
| JEL: | H55 J26 C21 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bav:wpaper:199_riphahnschrader&r= |
| By: | Villalobos Lopez, Jose Antonio |
| Abstract: | In Mexico, the absence of a general pension law has led to the non-homogeneous legal rules, the same contribution criteria, retirement age and, in essence, the amount of pension enjoyment. In 2018 our country had 56 million people from PEA, of whom 59% did not have access to pension and 41% if they enjoyed this benefit, of these the IMSS absorbed 86.3% of workers and ISSSTE at 11.3%, giving the sum of both 97.6%. Amendments to the IMSS Act of December 2020 will reduce from 1250 to 1000 weeks the minimum required to enjoy the pension, which will start from 750 weeks and the fees charged by AFORE will be at levels similar to those charged in the United States, Colombia and Chile. |
| Keywords: | Law 97 IMSS, Individual capitalization, Pensions, IMSS Pensions, LSS 1997 |
| JEL: | H55 |
| Date: | 2021–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107459&r= |
| By: | Lechler, Marie (LMU Munich); Sunde, Uwe (LMU Munich) |
| Abstract: | Considerable evidence has documented that the elderly are more religious and that religiousness is associated with better health and lower mortality. Yet, little is known about the reverse role of life expectancy or proximity to death, as opposed to age, for religiousness. This paper provides evidence for the distinct role of expected remaining life years for the importance of religion in individuals’ lives. We combine individual survey response data for more than 311,000 individuals from 95 countries over the period 1994-2014 with information from period life tables. Contrary to wide-held beliefs, religiousness decreases with greater expected proximity to death. The findings have important implications regarding the consequences of population aging for religiousness and associated outcomes. |
| Keywords: | Religiousness; demographics; proximity of death; remaining life years; |
| JEL: | J10 N30 Z12 |
| Date: | 2020–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:245&r= |
| By: | Ricky Kanabar (Univeristy of Bath); Paul Gregg (Univeristy of Bath) |
| Abstract: | The aim of this paper is to document the intergenerational persistence of wealth between adult offspring and their parent's using the Wealth and Assets Survey for Great Britain. As parental wealth it is not directly observed it is assessed as mean values based on age, home ownership and education from retrospective questions. Estimates are then derived employing a commonly used two stage estimator. For offspring aged around 44 and parents aged around 74, the oldest where wealth can reliably be observed in the sample, the intergenerational wealth elasticity (IWE) is 0.4 and the rank-rank elasticity 0.3. However, wealth is a stock accumulated over a person's working life and then dissaving takes place in retirement. Thus, peak wealth holding occurs around the age of 64 and this represents a proxy measure of life-time wealth accumulation. Under certain assumptions about parental wealth holding we explore wealth persistence for older offspring up to age 64. Importantly, we find at these older ages wealth persistence is generally lower than for those currently aged in their 30s and early 40s, though rank based estimates are broadly stable. The average IWE is 0.35 (ages 28-64) and rank equivalent 0.3 in 2012. For those in their 30s however, the IWE is 0.4, even though the short panel suggests a strong life cycle bias where wealth persistence is lower at ages below 64. Exploration of this contradiction shows that those who have a relatively high wealth among older cohorts came from more typical backgrounds than in younger ones. The six year panel data also shows that intergenerational wealth elasticity is 3.8 percentage points higher when comparing people with those the same age six years previously. There is, thus, very strong evidence of higher wealth intergenerational persistence in younger age cohorts. As it was already higher than for older cohorts and has risen rapidly, standing at 0.44 (ages 32-44) by 2018. |
| Keywords: | Wealth, Inequality, intergenerational mobility, Great Britain. |
| JEL: | D31 D63 I24 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:ucl:cepeow:21-06&r= |
| By: | Patrick Button; Mashfiqur R. Khan; Mary Penn |
| Abstract: | This paper examines spillovers onto Social Security Disability Insurance (SSDI) that occurred due to the Social Security Amendments of 1983, which, among other changes, gradually increased the retirement age for full benefits from 65 to 67. We determine whether the spillovers onto SSDI were different in states with age and disability discrimination laws that were broader (covered more people) or stronger (allowed for more damages for plaintiffs) than the federal Age Discrimination in Employment Act and the Americans with Disabilities Act. Our paper uses three sources of data: (1) counts of the universe of SSDI applications and receipts by state, age group, sex, and year; (2) the Health and Retirement Study, merged with restricted-access state identifiers; and, (3) the Health and Retirement Study, merged with restricted access state identifiers and Social Security Administration Form-831 disability records. To quantify the moderating impact of existing state laws on spillovers onto SSDI applications, receipts and employment, we use a difference-in-differences approach, comparing age cohorts who were affected by the reforms to similar age cohorts who were unaffected, and then this comparing this affected-unaffected difference across states by state law. Using the Health and Retirement Study data, we also conduct heterogeneity analysis to determine if effects differed for different age groups (ages 55-61, ages 62-64, ages 65 to the full benefits retirement age), those with or without disabilities, and by sex. The paper found that: ¥ Spillovers to SSDI application and receipt occurred mostly at ages 55-61 rather and ages closer to traditional retirement ages. These spillovers almost exclusively occurred for those with disabilities only. The employment effects from the Social Security Amendments instead affected those without disabilities and those closer to traditional retirement ages more. Women faced larger spillovers to both SSDI application and receipt and to employment. ¥ States with a medical definition of disability, which much more broadly covers individuals by state employment discrimination laws compared to the restrictive federal Americans with Disabilities Act, had reduced spillovers to SSDI application. In some cases, this was also associated with reductions in SSDI receipt, but our strongest evidence suggests just a decrease in SSDI applications. ¥ There is weak evidence that other broader or stronger features of state disability discrimination laws reduce SSDI application and receipt. ¥ We do not find any clear moderating effect of disability discrimination laws on employment. ¥ We do not find any moderating effect of broader or stronger features of state age discrimination laws and SSDI application and receipt, but we do find evidence that these features boost employment for those approaching traditional retirement age. The policy implications of the findings are: ¥ A broader definition of disability under discrimination law, like the medical definition of disability, seems to be associated with reduced SSDI applications. These foregone SSDI applications, which we argue in the paper were likely unsuccessful, reduced costs both for applicants and for SSA, given the large and indirect costs of SSDI application, especially given the long wait times for a final decision. ¥ Other stronger and broader features of disability discrimination laws may also reduce reliance on SSDI. ¥ There is not clear evidence that disability discrimination laws boost or reduce employment, suggesting that they may not have a strong role in affecting employment outcomes for individuals with disabilities and/or older workers. |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:crr:crrwps:wp2021-07&r= |
| By: | Anqi Chen; Alicia H. Munnell |
| Abstract: | To evaluate their retirement resources, households approaching retirement will examine their Social Security statements, defined benefit pensions, defined contribution balances, and other financial assets. However, many households may forget that not all of these resources belong to them; they will need to pay some portion to the federal and state governments in taxes. The question is just how large the tax burden is for the typical retired household and for households at different income levels. To address that question, this brief, which is based on a recent study, estimates lifetime taxes for a group of recently retired households. The project uses data from the Health and Retirement Study linked to administrative earnings to determine Social Security benefits, and it uses administrative records on state of residence to estimate state tax liabilities. Income is then projected over the expected retirement of each household, and federal and state taxes are estimated with the TAXSIM program. The results relate the present discounted value of lifetime taxes at retirement to the present value of retirement resources. The discussion proceeds as follows. The first section describes the types of taxes that households face on their retirement resources. The second section discusses the data and methodology. The third section presents the results. For the lowest four quintiles, taxes are negligible, but rise to 11 percent for the top quintile, 16 percent for the top 5 percent, and 23 percent for the top 1 percent. These percentages change very little across a variety of strategies for drawing down retirement assets. The final section concludes that taxes are an important consideration for the retirees who are most reliant on 401(k)/IRA and other financial assets. Understanding the magnitude of this liability is important not only for individualsÕ assessment of their own retirement security but also for measuring trends in wealth over time and the impact of wealth on retirement decisions. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2020-16&r= |
| By: | Matthew S. Rutledge; Gal Wettstein; Sara Ellen King |
| Abstract: | Recent research has called attention to workers in nontraditional jobs Ð defined here as jobs without retirement and health benefits, particularly those with volatility in hours or wages. At the same time, U.S. workers are facing growing competition from trade and automation. The question is: are trade and automation pushing more workers into nontraditional jobs? This issue may be a particular concern for older workers, who increasingly need longer careers with continued access to retirement plans and health coverage to secure an adequate retirement. To explore the relationship between trade, automation, and nontraditional work, this brief, based on a recent study, tests whether workers are more likely to be in nontraditional jobs, or to transition to such jobs, in states that have greater exposure to trade and automation. The discussion proceeds as follows. The first section defines nontraditional work and presents trends in trade and automation. The second section describes the analytic approach. The third section reports the results, which show no evidence that a rise in import competition leads workers to end up in Ð or switch to Ð nontraditional jobs. However, some evidence suggests that automation does have an effect, particularly for older workers relative to mid-career workers. The final section concludes that as automation continues to increase, nontraditional jobs may grow more common, underscoring the need for alternative sources of retirement saving and health insurance coverage. |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2020-6&r= |
| By: | Claudia Senik (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, SU - Sorbonne Université); Guglielmo Zappalà (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Carine Milcent (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Chloé Gerves-Pinquié (Institut Recherche en Santé Respiratoire des Pays de la Loire); Patricia Dargent-Molina (INSERM - Institut National de la Santé et de la Recherche Médicale) |
| Abstract: | We explore the effects of adapted physical exercise programs in nursing homes, in which some residents suffer from dementia and/or physical limitations and other do not. We use data from 452 participants followed over 12 months in 32 retirement homes in four European countries. Using a difference-in-difference with individual random effects model, we show that the program has exerted a significant impact on the number of falls and the self-declared health and health-related quality of life of residents (EQ-5D). The wide scope of this study, in terms of sites, countries, and measured outcomes, brings generality to previously existing evidence. A simple computation, in the case of France, suggests that such programs are highly cost-efficient. |
| Keywords: | falls,Subjective health,Impact study,Retirement homes,Physical activity |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03205172&r= |
| By: | Leroux, Marie-Louise (Université catholique de Louvain, LIDAM/CORE, Belgium); Pestieau, Pierre (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | This paper studies the design of an optimal non linear inheritance taxation when individuals differ in wage as well as in their risks of both mortality and old-age dependance. We assume that the government cannot distinguish between bequests motives, that is whether bequests result from precautionary reasons or from pure joy of giving reasons. Instead, we assume that it only observes whether bequests are made early in life or late in life, and in the latter case, whether the donor is autonomous or not. The main result is that, under asymmetric information, in addition to labour income taxation, early bequests of the low-productivity agent should be distorted downward, that is, they should be taxed so as to relax incentive constraints. |
| Keywords: | Bequest taxation; Long term care; Utilitarianism; Old-age dependency; Non linear taxation |
| JEL: | H21 H23 I14 |
| Date: | 2021–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2021002&r= |
| By: | Geoffrey T. Sanzenbacher |
| Abstract: | The discussion proceeds as follows. The first section describes the CPS data. The second section presents the results for those ages 50-61, and the third section presents the results for those 62+. The final section concludes that, not surprisingly, recessions generally hit low earners harder than high earners. And, for low earners as a group, the COVID Recession was slightly worse than the Great Recession. Interestingly, the oldest high earners (ages 62+) did worse in the COVID Recession than they did in the Great Recession, both in terms of general labor force exits and outright retirement. |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2021-07&r= |
| By: | Véronique Delcroix (LAMIH - Laboratoire d'Automatique, de Mécanique et d'Informatique industrielles et Humaines - UMR 8201 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - CNRS - Centre National de la Recherche Scientifique - UPHF - Université Polytechnique Hauts-de-France); Fatma Essghaier (LAMIH - Laboratoire d'Automatique, de Mécanique et d'Informatique industrielles et Humaines - UMR 8201 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - CNRS - Centre National de la Recherche Scientifique - UPHF - Université Polytechnique Hauts-de-France); Káthia Marçal de Oliveira (LAMIH - Laboratoire d'Automatique, de Mécanique et d'Informatique industrielles et Humaines - UMR 8201 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - CNRS - Centre National de la Recherche Scientifique - UPHF - Université Polytechnique Hauts-de-France); Philippe Pudlo (LAMIH - Laboratoire d'Automatique, de Mécanique et d'Informatique industrielles et Humaines - UMR 8201 - UVHC - Université de Valenciennes et du Hainaut-Cambrésis - CNRS - Centre National de la Recherche Scientifique - UPHF - Université Polytechnique Hauts-de-France); Cédric Gaxatte (Hôpital des bateliers, CHRU Lille - Centre Hospitalier Régional Universitaire [Lille]); François Puisieux (Hôpital des bateliers, CHRU Lille - Centre Hospitalier Régional Universitaire [Lille]) |
| Abstract: | The fall is one of the leading causes of death for elderly. Falls in elderly are caused by multiple factors, such as the aging process itself, persons' behavior, habits and environment. Expert knowledge about all these risk factors is required to provide the right recommendation in order to prevent falls. We have worked on the design of a knowledge-based system. An ontology was defined capturing the core knowledge to be used in the system in order to allow falling risk evaluation and definition of the adapted recommendations. |
| Keywords: | knowledge model,fall prevention,ontology |
| Date: | 2020–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03198898&r= |
| By: | Hippolyte d'Albis (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Karina Doorley (ESRI Dublin); Elena Stancanelli (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | A significant literature in the social sciences addresses the impact of child-bearing and rearing on marital stability and on mothers' labour market outcomes. Much less is known about older mothers' employment and marriage patterns when the adult children leave the parental nest. This study aims to shed light on these issues using longitudinal labour force data for France. Exploiting retirement laws for identification purposes, and taking a regression discontinuity approach, we find that older women's retirement probability is positively associated with an empty nest. We also conclude that an empty nest is negatively associated with older mothers' marriage probability. There is scope for better targeting of both family and retirement policies for older mothers during those critical years when adult children leave the parental nest. |
| Keywords: | Ageing,Retirement,Divorce |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03203063&r= |
| By: | Gal Wettstein; Alicia H. Munnell; Wenliang Hou; Nilufer Gok |
| Abstract: | The first cohorts reliant on defined contribution pensions are now entering retirement, leading to a new challenge: how to balance current needs against the risk of outliving oneÕs assets? Annuities, which offer guaranteed lifetime income, are a leading solution to this problem. However, take-up of annuities is low, with their expected cost cited as a main explanation. This brief, based on a recent paper, explores trends in the value of retail annuities. This topic has not been addressed in two decades, a period during which interest rates have declined, life expectancy has increased, and new annuity products have emerged. The brief looks first at ÒmoneyÕs worthÓ Ð the ratio of expected lifetime benefits to cost Ð and then at Òwealth equivalenceÓ Ð a measure that takes into account the insurance value of annuities. It also explores how both measures vary by socioeconomic status (SES). The discussion proceeds as follows. The first section describes the data and methodology for calculating moneyÕs worth and wealth equivalence. The second section explores trends in these measures for three types of annuities Ð immediate, indexed, and deferred Ð for the full population. The third section provides the current moneyÕs worth and wealth equivalence of immediate annuities for different SES groups. The final section concludes that moneyÕs worth has remained stable over time, with an expected payout of about 80 cents per premium dollar for immediate and indexed annuities and about 50 cents per dollar for deferred annuities. But, accounting for the insurance value, the wealth equivalence measure suggests that everyone gains from purchasing annuities. And Blacks actually benefit more from annuities than whites, despite having a lower life expectancy, because their lifespans are more uncertain. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2021-05&r= |
| By: | Falk, Armin (University of Bonn); Hermle, Johannes (UC Berkley); Sunde, Uwe (LMU Munich) |
| Abstract: | Why does patience vary across individuals and countries? We provide evidence on a widely-hypothesized mechanism, namely that higher longevity fosters patience. Using data on patience for 80,000 individuals in 76 countries, this paper relates exogenous variation in longevity across gender-age-country cells to variation in patience. We find that a ten-year increase in life expectancy implies a 5-percentage point higher discount factor. This relationship emerges for various sub-samples and is unaffected by other determinants including lifetime experiences regarding economic development, institutional quality, or violence. We provide a model to discuss the implications for the emergence of poverty traps. |
| Keywords: | time preferences; mortality; poverty traps; |
| JEL: | D10 J10 O10 |
| Date: | 2019–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:201&r= |
| By: | Dimitri Voilmy (LM2S - Laboratoire Modélisation et Simulation de Systèmes - DM2I - Département Métrologie Instrumentation & Information - LIST - Laboratoire d'Intégration des Systèmes et des Technologies - DRT (CEA) - Direction de Recherche Technologique (CEA) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay); Karine Lan Hing Ting (LM2S - Laboratoire Modélisation et Simulation de Systèmes - DM2I - Département Métrologie Instrumentation & Information - LIST - Laboratoire d'Intégration des Systèmes et des Technologies - DRT (CEA) - Direction de Recherche Technologique (CEA) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay); Ana Iglesias (UC3M - Universidad Carlos III de Madrid [Madrid]); Rebeca Marfil (Universidad de Málaga [Málaga] = University of Málaga [Málaga]); Juan Pedro Bandera (Universidad de Málaga [Málaga] = University of Málaga [Málaga]); Fernandez Fernando (UC3M - Universidad Carlos III de Madrid [Madrid]); Quitterie de Roll (Centre de Rééducation et de Réadaptation Fonctionnelle Pasteur) |
| Abstract: | Dans un contexte de vieillissement de la population, l'évaluation et le suivi des patients âgés participent aux objectifs de prévention gériatrique, à savoir l'allongement de la durée de vie sans incapacité et la préservation de l'autonomie. L'évaluation gériatrique standardisée (EGS) est un instrument de diagnostic multidimensionnel et pluridisciplinaire qui permet de proposer des soins personnalisés aux personnes âgées, sur la base de l'évaluation de leur état de santé. Cette évaluation repose sur une vaste collecte de données portant sur les incapacités médicales, psychosociales et fonctionnelles de la personne âgée fragile, afin d'élaborer un plan coordonné favorisant un vieillissement en bonne santé. Cependant, faute de moyens suffisants, une part importante de population âgée fragile n'est aujourd'hui pas prise en charge, ou insuffisamment. L'hypothèse de recherche est qu'une solution robotique permettrait un gain d'efficacité dans le suivi gériatrique, permettant ainsi le repérage et le suivi d'un plus grand nombre de personnes âgées. Résultat de 3 années de recherche, Clara est aujourd'hui un robot assistant gériatrique opérationnel de niveau TRL 8. Cet article présente l'évaluation pilote qui a été menée en situation réelle d'usage entre mai et juillet 2019, dans le cadre d'une convention cadre de partenariat entre les établissements dont sont issus les auteurs. |
| Keywords: | Evaluation gériatrique standardisée,Interaction humain-robot,Evaluation pilote |
| Date: | 2020–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03198160&r= |
| By: | Fitzenberger, Bernd (HU Berlin); Mena, Gary (HU Berlin); Nimczik, Jan (ESMT Berlin); Sunde, Uwe (LMU Munich) |
| Abstract: | Despite the importance for socio-economic outcomes, there is an ongoing debate about the stability of personality traits over the life cycle. By disentangling age, period and cohort influences on personality traits, this paper adds to the existing empirical contributions, which often focus on age patterns and disregard cohort and period influences. We present the results from systematic specification tests that provide novel evidence for the separability of age, period, and cohort effects in almost all personality traits. Our estimates also document that for different cohorts, the evolution of personality traits across the life-cycle follows a stable, though non-constant, age-profile, while there are sizeable differences across time periods. |
| Keywords: | big five personality traits; locus of control; risk attitudes; age-period-cohort decomposition; life cycle; |
| JEL: | D8 J1 |
| Date: | 2019–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:214&r= |