nep-age New Economics Papers
on Economics of Ageing
Issue of 2022‒09‒19
eight papers chosen by
Claudia Villosio
LABORatorio R. Revelli

  1. Long-Term Services and Supports and Disease Management among Older Chinese Adults in Different Stages of Cognitive Impairment By Lin, Zhuoer; Chen, Xi
  2. Genetic Endowments, Income Dynamics, and Wealth Accumulation Over the Lifecycle By Daniel Barth; Nicholas W. Papageorge; Kevin Thom; Mateo Velásquez-Giraldo
  3. Family Bargaining and the Gender Gap in Informal Care By Canta, Chiara; Cremer, Helmuth
  4. Feeling discriminated means poor self-perceived health: a gender analysis using SHARE By Pinillos-Franco, Sara; Cantarero-Prieto, David; Lera, Javier
  5. Bringing Them In or Pushing Them Out? The Labor Market Effects of Pro-cyclical Unemployment Assistance Changes By Gerard Domènech-Arumí; Silvia Vannutelli
  6. Mental health effects of caregivers respite: subsidies or supports? By Costa-Font, Joan; Vilaplana-Prieto, Cristina
  7. Gendered Ageism and Disablism and Employment of Older Workers By Joanne S. McLaughlin; David Neumark
  8. Opciones para expandir la cobertura contributiva de pensiones entre los trabajadores independientes en el Perú By Bernal Lobato, Noelia

  1. By: Lin, Zhuoer (Yale University); Chen, Xi (Yale University)
    Abstract: Rapid population aging elevates burden of chronic and non-communicable diseases among older adults. Despite the critical role of self-management in disease prevention and control, effective management of diseases can be cognitively demanding and may require additional supports from family and social services. Using nationally representative data from China, this paper reveals great challenges in disease management and characterizes the differential effects of long-term care services and supports (LTSS) on disease management among older adults in different stages of cognitive impairment (CI). In specific, we use preventive care utilization and hypertension management as key indicators to assess the performance of disease management. We show that while access to LTSS from spouse or home-based services significantly facilitate active disease management behaviors, the effects are only evident among older adults with no CI. By contrast, access to LTSS has very modest effect for cognitively impaired individuals. In addition, older adults in more severe stages of CI perform worse in disease prevention, hypertension awareness and management. These findings reveal the vulnerability of older adults with CI in disease management and point to the importance of promoting targeted interventions to reduce barriers of accessing LTSS, especially among cognitively impaired population.
    Keywords: hypertension, aging, long-term services and supports, chronic disease management, cognitive impairment, disease awareness, preventive care utilization
    JEL: J14 I18 I38 D10 H41
    Date: 2022–08
  2. By: Daniel Barth; Nicholas W. Papageorge; Kevin Thom; Mateo Velásquez-Giraldo
    Abstract: We develop and estimate a life-cycle consumption savings model in which observed genetic variation is allowed to affect wealth accumulation through several distinct channels. We focus on genetic markers that predict educational attainment, aggregated into a predictive index called a polygenic score. Based on substantial descriptive evidence, we allow variation in these endowments to affect earnings, the disutility of labor, stock market participation costs, and idiosyncratic rates of return on risky investments. The model also incorporates endogenous retirement and a realistic social security system. Parameter estimates suggest that, in addition to earnings, genetic differences are significantly associated with risky asset returns, both of which contribute to wealth inequality. Counterfactual policy exercises indicate that two ways to lower costs of an aging population (extending the age of retirement or cutting social security benefits) have similar magnitudes and distributions of welfare costs even though the latter policy appears to reduce wealth differences between agents with different genetic endowments. This illustrates the importance of welfare calculations when evaluating how genes interact with policy, which is possible to do if we incorporate genetic data into structural models.
    JEL: D14 D15 D31 D63 G50 H31 H55 I38 J24 J26
    Date: 2022–08
  3. By: Canta, Chiara (Toulouse Business School); Cremer, Helmuth (Toulouse School of Economics)
    Abstract: We study the optimal long-term care policy when informal care can be provided by children in exchange for monetary transfers by their elderly parents. We consider a bargaining model with single-child families. Daughters have a lower labor market wage and a lower bargaining power within the family with respect to sons. Consequently, they provide more informal care and have lower welfare in the laissez-faire (although not necessarily lower transfers). The first best involves redistribution from families with sons to families with daughters and can be implemented by a gender-specific schedule of public LTC benefits and transfers to working children. If the policy is restricted to be gender neutral, we find that the informal care provided by daughters should be distorted up to enhance redistribution from families with sons to families with daughters. Transfers within the family should be distorted in both types of families.
    Keywords: family bargaining, strategic bequests, informal care, long-term care, gender-neutrality
    JEL: D13 H23 H31 I19
    Date: 2022–08
  4. By: Pinillos-Franco, Sara; Cantarero-Prieto, David; Lera, Javier
    Abstract: Most part of the literature has highlighted the detrimental effects of discrimination on health. However, the influence of past and perceived discrimination on older workers’ self-assessed health has been understudied. We aim to study whether reported discrimination is associated with self-assessed health among old men and women of working ages (50-65 years of age). Data was retrieved from the seventh wave of the Survey of Health, Ageing and Retirement in Europe (SHARE) to obtain the regular panel of questions, and the third and seventh waves of the SHARELIFE questionnaire, that includes information about discrimination (n=30,019). We first used Latent Class Analysis (LCA) to detect groups of individuals in our sample and afterward, we used logistic regression models to determine the impact of discrimination on old men and women workers’ health separately. The results show that 49.0% of our sample was composed of highly discriminated old women, while the remaining percentage covered old men and women (42.3% males and 8.7% females) that reported lower levels of discrimination. Our estimations reveal a significant association between discrimination and poor health status, especially in the case of old men ranging from OR=1.807 (95% CI 1.497 – 2.182) to OR=1.619 (95% CI 1.356 – 1.933). In the case of women our results range from OR= 1.729 (95% CI 1.456 – 2.055) to OR= 1.197 (95% CI 0.981 – 1.462). These findings are essential to highlight the importance of tackling discrimination as a determinant of health that negatively affects both sexes, men and women.
    Keywords: Discrimination; Mental Health; Physical Health; self-assessed health; SHARE; LCA
    JEL: D63 I14 J14
    Date: 2022
  5. By: Gerard Domènech-Arumí; Silvia Vannutelli
    Abstract: We exploit an unanticipated labor market reform in 2012 Spain to estimate the effects of pro-cyclical changes in long-term unemployment assistance (UA). The reform raised the minimum age to receive unlimited-duration UA from 52 to 55. Using a dfference-in-differences design, we document that shorter benefits caused (i) shorter non-employment duration, especially among younger workers; (ii) higher labor force exit and other programs' take-up, especially among older workers; (iii) lower reemployment wages. The reform induced moderate government savings. Our results highlight how considering the interplay with labor market conditions is crucial when designing long-term beneffit schedules affecting workers close to retirement.
    Keywords: Unemployment, Unemployment Insurance, Wages
    Date: 2022–07
  6. By: Costa-Font, Joan; Vilaplana-Prieto, Cristina
    Abstract: We study the effect the effect of a policy intervention that universalized previously means-tested subsidies in Spain, and document causal evidence of the effect of the receipt of caregiving supports and subsidies on unpaid spousal/partners caregivers mental health. Our estimates suggest that caregiving supports improve the mental health of caregivers among those providing more than 50 hours of care. In contrast, a subsidy gives rise to a reduction of 14.2pp. in the probability of depressive symptoms among individuals receiving less than 50 hours of care. Consistently, we find evidence of an increase in life satisfaction (15%) upon the receipt of subsidies and home supports (11%). We further document that evidence of a reduction in the probability of depression which is higher among part-time caregivers who spend between 20-50 caregiving hours/week compared to those providing more intensive care, which is explained by behavioural changes after the receipt of caregiving benefits. Finally, we estimate that a ‘hypothetical caregiving’ subsidy amount that would have fully compensated caregivers’ for their wellbeing losses (compared to non-caregivers) should lie between 800 and 850 euros/month, which is a magnitude well above the actual subsidy.
    Keywords: caregiving; long-term subsidies; long term care supports; mental health; caregiver's mental health; Spain; Elsevier deal
    JEL: I18 J22
    Date: 2022–10–01
  7. By: Joanne S. McLaughlin; David Neumark
    Abstract: Gendered discrimination based on age and disability is a pressing issue, because this discrimination can interfere with the goal of lengthening work lives, especially for older women. In the United States, the Age Discrimination in Employment Act and the Americans with Disabilities Act prohibit age and disability discrimination in employment, while Title VII of the Civil Rights Act bars discrimination against women. However, because gender and age (and disability) discrimination fall under different statutes, these laws may be inadequate to protect against discrimination based on gendered ageism and disablism. Legal rulings in the United States generally do not recognize intersecting claims – discrimination based on two or more protected characteristics – when those characteristics are covered by separate statutes. This may help explain the evidence that age discrimination is worse for women than for men. We discuss the theory and methods we can use to analyze these issues, and the relevant laws and their failure to protect women from gendered ageism. We review evidence on gendered age discrimination, and evidence on the effects of discrimination laws and how well they protect from intersectional discrimination. Finally, we discuss potential changes in policies that could better protect against gendered age discrimination.
    JEL: J14 J7
    Date: 2022–08
  8. By: Bernal Lobato, Noelia
    Abstract: Ante un contexto marcado por la alta informalidad laboral y las brechas de cobertura contributiva del sistema de pensiones en el Perú, y en atención a los impactos ocasionados por la pandemia de enfermedad por coronavirus (COVID-19), en este estudio se analizan las características del mercado laboral y su relación con el sistema de pensiones en el país, con énfasis en la cobertura de los trabajadores independientes. Junto con indagar en la institucionalidad y los indicadores del sistema de pensiones, así como en el impacto de la pandemia y en experiencias recientes de algunos países de América Latina, el estudio plantea un conjunto de recomendaciones para ampliar la cobertura del sistema de pensiones para los trabajadores independientes en el país.
    Date: 2022–08–08

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