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on Economics of Ageing |
| By: | Horioka, Charles Yuji; Ventura, Luigi |
| Abstract: | In this paper, we use micro data on a large number of European countries from the Survey of Health, Ageing and Retirement in Europe (SHARE) to examine the wealth accumulation (saving) behavior of the retired elderly in Europe. To summarize our main findings, we find that less than half of the retired elderly in Europe are decumulating their wealth and that the average wealth accumulation rate of the retired elderly in Europe is positive though relatively moderate (6.6% over a 3-year period). These findings strongly suggest that the Wealth Decumulation (or Retirement Saving) Puzzle (the tendency of the retired elderly to not decumulate their wealth or to decumulate their wealth more slowly than expected) applies in the case of Europe. Moreover, our regression results suggest that bequest motives, generous public pension systems, and the reluctance of retired elderly homeowners to sell or borrow against their owner-occupied housing are the primary explanations for the existence of the Wealth Decumulation Puzzle in Europe. |
| Keywords: | Aged, bequests, bequest intentions, bequest motives, dissaving, elderly, Europe, household saving, inheritances, intergenerational transfers, life cycle model or hypothesis, precautionary saving, retired elderly, Retirement Saving Puzzle, saving, SHARE, wealth accumulation, wealth decumulation, Wealth Decumulation Puzzle, D14, D15, D64, E21, H55, J14 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:agi:wpaper:00000198&r= |
| By: | Owen Nyangoro; Githinji Njenga |
| Abstract: | The population structure the world over is going through a demographic shift, and the elderly proportion is projected to increase with population growth. This change is a matter of concern for sub-Saharan African (SSA) countries, where the majority of the people are young and the rates of both population growth and unemployment are high. A good pension system provides elderly assistance and is a source of savings for long-term investment. |
| Keywords: | Elderly care, Pensions, Saving, Sub-Saharan Africa |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-95&r= |
| By: | Charles Yuji Horioka; Luigi Ventura |
| Abstract: | In this paper, we use micro data on a large number of European countries from the Survey of Health, Ageing and Retirement in Europe (SHARE) to examine the wealth accumulation (saving) behavior of the retired elderly in Europe. To summarize our main findings, we find that less than half of the retired elderly in Europe are decumulating their wealth and that the average wealth accumulation rate of the retired elderly in Europe is positive though relatively moderate (6.6% over a 3-year period). These findings strongly suggest that the Wealth Decumulation (or Retirement Saving) Puzzle (the tendency of the retired elderly to not decumulate their wealth or to decumulate their wealth more slowly than expected) applies in the case of Europe. Moreover, our regression results suggest that bequest motives, generous public pension systems, and the reluctance of retired elderly homeowners to sell or borrow against their owner-occupied housing are the primary explanations for the existence of the Wealth Decumulation Puzzle in Europe. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1189&r= |
| By: | Han, Yiran (University at Albany, SUNY); Yörük, Baris (University at Albany, SUNY) |
| Abstract: | More than 18 percent of U.S. adults met the diagnostic criteria for a mental illness. Yet, many who could benefit from mental health care do not receive any treatment, mostly due to the inability to pay for care or lack of health insurance coverage. How does a sudden change in health insurance coverage status affect psychological well-being and mental health? We explore this question using age-based health insurance coverage policies in the United States as natural experiments. We provide evidence that losing health insurance coverage at age 26 due to aging out from dependent coverage is associated with a statistically significant deterioration in certain indicators of mental health among young adults. On the other hand, we find no evidence of an improvement in mental health or psychological well-being among the elderly at age 65 due to becoming eligible for Medicare. These results are robust to potential changes in risk-taking behavior and physical health at the same age cutoffs. |
| Keywords: | affordable care act, dependent coverage, health insurance, medicare, mental health, psychological well-being |
| JEL: | I12 I13 I18 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15489&r= |
| By: | Jacob Bikker; Jeroen Meringa |
| Abstract: | Investment costs of pension funds are crucial for their returns. Consolidation in the pension fund market proceeds continuously, often with cost savings as the main argument. Unused economies of scale in the pension fund investment costs, however, have declined over the years to values close to zero, except for the very small pension funds. This paper investigates investment economies of scale in the Netherlands and pays special attention to the non-linear relationship between investment costs and sizes of pension funds. Furthermore, investment cost margins are disaggregated into three cost types and into six asset categories. Performance fees are in particular paid for complex asset categories held by large pension funds. They reduce the traditional scale economy results for the entire portfolio. Cost savings by consolidation are still possible but are very limited. |
| Keywords: | Scale economies; cost elasticity; pension funds; investment costs; efficiency; non-linear cost-size relationship |
| JEL: | G23 L0 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:710&r= |
| By: | Dirk Broeders; Kristy Jansen |
| Abstract: | We use bias-free data to analyse the investment strategies of pension funds with similar objectives by measuring their factor exposures within equity and fixed income portfolios. We find substantial heterogeneity in these factor exposures reflecting annual return differences of 1.31-2.35 percentage points. Following our mean-variance optimization model, we find that the funding ratio, risk aversion, and liability duration explain 36 percent of this heterogeneity. We attribute the remaining 64 percent to differences in beliefs that pension funds disclose through their contracting of asset management firms. Beliefs therefore have important economic implications for beneficiaries who cannot freely choose a pension fund. |
| Keywords: | G11; G23 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:712&r= |
| By: | Rachel Scarfe (School of Economics, University of Edinburgh); Carl Singleton (Department of Economics, University of Reading); Adesola Sunmoni (Department of Economics, University of Reading); Paul Telemo (School of Economics, University of Edinburgh) |
| Abstract: | There is an inverted u-shaped relationship between age and wages in most labour markets and occupations, but the effects of age on productivity are less clear. We use panel data on the productivity and salaries of all elite professional footballers (soccer players) in North America to estimate age-productivity and age-wage profiles, which control for unobserved player characteristics and for entry and exit from this market, finding stark differences. While the productivity of footballers tends to peak in their early to mid-20s and then falls slowly, wages continue to increase throughout most of their careers, up to age 30, after which they fall rapidly. This discrepancy has been observed in other labour markets and poses the question: why are the youngest and oldest workers seemingly underpaid relative to their productivity? We consider a number of possible mechanisms that could be responsible without finding a clear culprit. |
| Keywords: | Labour productivity, Wages, Aging, Major League Soccer |
| JEL: | J23 J24 J31 J41 Z22 |
| Date: | 2022–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2022-07&r= |
| By: | Mario Lackner; Hendrik Sonnabend (University of Hagen) |
| Abstract: | We use data from top-level soccer to examine determinants of individual misbehaviour in team contests. Our estimates indicate a significant positive and non-linear relationship between a player’s age and (relative) ability on the one hand and the tendency to misbehave on the other. These findings are consistent with Social Learning Theory in that the group of high-status players may has learned that the consequences of misconduct are low and manageable. Furthermore, we demonstrate that misbehaviour is costly to both the players and their teams. |
| Keywords: | misconduct, contests, status, soccer |
| JEL: | J32 J24 K42 L83 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2022-11&r= |
| By: | Nino Gogsadze (IPC-IG) |
| Keywords: | social protection; systemic design |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opager:519&r= |
| By: | Darleen Kolbe (IPC-IG); Nino Gogsadze (IPC-IG) |
| Keywords: | social protection; systemic approach |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opager:516&r= |
| By: | Nino Gogsadze (IPC-IG) |
| Keywords: | social protection; social insurance; microinsurance |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opager:517&r= |