nep-age New Economics Papers
on Economics of Ageing
Issue of 2024‒01‒01
thirteen papers chosen by
Claudia Villosio, LABORatorio R. Revelli

  1. Fair Pension Policies with Occupation-Specific Aging By Schünemann, Johannes; Grossmann, Volker; Strulik, Holger
  2. Retirement Policy in a Post-Covid World By Arapakis, K., French, E.; French, E.
  3. Long-term Care in England By Banks, J.; McCauley, J.; French, E.
  4. Long-term Care in Italy By Agar Brugiavini; Ludovico Carrino; Giacomo Pasini
  5. The Municipal Role in Long-Term Care By Pat Armstrong; Daniella Balasal; Nadia De Santi; Shirley Hoy; Gabriel Eidelman; Kass Forman; Spencer Neufeld
  6. Individual funded pension accounts and the World Bank: evolving views By Barr, Nicholas
  7. Pension Reforms and Couples' Labour Supply Decisions By Puhani, Patrick; Moghadam, Hamed; Tyrowicz, Joanna
  8. Are the widowed too much insured? Survivor’s pensions and living standards upon widowhood in France By Léa Cimelli
  9. Componente contributivo del Sistema de Seguridad Social: saldo por CCAA y desglose de los factores de influencia del saldo de las pensiones. Ejercicio 2021 By Miguel Ángel García Díaz
  10. Part-time Employment Opportunities and Labour Supply of Older Workers By Maciej Albinowski
  11. The Effect of Disability Insurance Receipt on Mortality By Black, B.; French, E.; McCauley, J.; Song, J.
  12. Why Do Retired Households Draw Down Their Wealth So Slowly? By French, E.; Jones, J B.; McGee, R.
  13. Cambio demográfico y brechas de protección social en México, Centroamérica y el Caribe By Huenchuán, Sandra

  1. By: Schünemann, Johannes; Grossmann, Volker; Strulik, Holger
    JEL: H55 I14 I24
    Date: 2023
  2. By: Arapakis, K., French, E.; French, E.
    Abstract: In this paper we evaluate the challenges of funding retirement in the aftermath of the Covid pandemic. We first show that the pandemic had only modest effects on life expectancy and employment. These effects were small relative to longer term trends. Nevertheless, they worsened pension funding problems, highlighting the need for future pension reforms. Next, we highlight key evidence on how labor supply responds to pension reforms. Evidence suggests that incentivising later retirement can reduce pension deficits.
    Date: 2023–11–28
  3. By: Banks, J.; McCauley, J.; French, E.
    Abstract: This paper describes the state of Long-Term Care (LTC) in England. LTC, which is generally referred to in England as adult social care, supports activities of daily living for older and disabled individuals to improve their quality of life. This includes stays in nursing homes as well as home-based help with tasks such as washing, dressing, and feeding.
    Date: 2023–11–27
  4. By: Agar Brugiavini; Ludovico Carrino; Giacomo Pasini
    Abstract: The provision of long-term care (LTC) for senior citizens in Italy is at the center of the recent policy debate. Italy has witnessed a spectacular increase in the share of people aged 65 and over and in particular of people aged 80 and over, which could translate in large increases in the number of people in need of care. We show that individuals who are in need of LTC have lower economic resources than the average, so that many frail older people have little financial means to pay out-of-pocket for formal care. In fact, publicly provided care is highly fragmented, with stark differences emerging in terms of coverage and generosity across Italian regions. Hence, the supply of LTC is relying heavily on the informal support of members of the family, especially women, at the same time formal care is characterised by a significant underground economy of unskilled carers.
    JEL: D1 I13
    Date: 2023–11
  5. By: Pat Armstrong; Daniella Balasal; Nadia De Santi; Shirley Hoy; Gabriel Eidelman; Kass Forman; Spencer Neufeld (University of Toronto)
    Abstract: By the mid-2030s, approximately 1 in 4 Canadians could be over the age of 65. This demographic shift, combined with the acute crisis brought on by the COVID-19 pandemic, has made reforming long-term and seniors’ care an urgent issue. In general, responsibility for providing care to seniors falls to provinces, which in turn benefit from significant federal transfers to help fund services in this area. In Ontario, however, municipalities share in the delivery of seniors’ care, and are required to run a minimum number of long-term care homes. Moreover, their responsibilities in urban planning extend to designing age-friendly communities that meet the needs of older populations. The seventh report in the Who Does What series from the Institute on Municipal Finance and Governance (IMFG) and the Urban Policy Lab examines the role that municipalities play in long-term and elder care, with a special focus on Ontario municipalities. Pat Armstrong argues that municipal long-term care facilities provide the best care and working conditions relative to private and for-profit homes. She calls for Ontario to build upon its role with respect to funding and regulating municipal long-term care homes by improving wages for workers in these facilities. She also suggests that the federal government apply conditions to transfer payments to encourage other orders of government to adopt higher standards of care. Daniella Balasal and Nadia De Santi discuss the concept of age-friendly communities, describing how municipalities are developing strategies and plans to meet the needs of their aging populations outside institutional settings. They cite Ontario’s age-friendly community planning guide as an overarching framework for municipalities to develop local strategies and plans. Shirley Hoy advocates for a foundational restructuring of the long-term care sector. Hoy calls for deep integration of provincial health services, such as doctors and hospitals, with the broader elder care system. Given their role in providing both long-term care and social services, municipalities have a critical part to play in coordinating primary care, long-term care, and community-based supports. Hoy adds that the 2023 health care funding deal between the federal government and the provinces could act as the impetus to strengthen long-term care at the local level.
    Keywords: Canada, municipalities, long-term care, intergovernmental relations, seniors, age-friendly communities
    JEL: J14 J18 H70
    Date: 2023–11
  6. By: Barr, Nicholas
    Abstract: Introduction: This paper sets out a brief history of World Bank involvement in pensions. Section 1 considers the period 1980–2000, and in particular a major pension reform in Chile in 1981 and the World Bank’s support for that approach, discussing the reforms and how well, or otherwise, they performed. Section 2 explains increasing diversity of views within the World Bank, and section 3 the more balanced view of recent years. Objective: The main goal of the presented article is to provide a comprehensive analysis of the evolution and controversies surrounding individual funded pension accounts, with a primary focus on the Chilean model and its global impact. The article aims to critically examine the historical context, the World Bank’s role, internal and external debates, and recent developments in pension policy. Ultimately, it seeks to foster a more balanced understanding of pension systems, acknowledging their complexities, objectives beyond consumption smoothing, and the need for responsive policy adjustments in the face of real-world challenges. Materials and methods: The analysis is based on historical and policy documents, literature review, comparative analysis, qualitative assessments, and policy evaluation. Results: The main conclusion of the article is that the widespread adoption of individual funded pension accounts, as championed by the World Bank and initially implemented in Chile, has faced significant challenges and limitations. While these accounts were promoted as a panacea for pension reform challenges, the article argues that they have not lived up to their promises. Issues such as incomplete coverage, inadequate pensions, high administrative charges, gender inequality, and fiscal transition costs have raised concerns. The article also highlights a shift in recent years toward a more balanced and comprehensive approach to pension policy, emphasizing the importance of addressing poverty relief and broader social protection objectives.
    Keywords: funded pensions; pension reform in Chile; pension schemes; the old age crisis; World Bank
    JEL: J1 F3 G3
    Date: 2023–10–04
  7. By: Puhani, Patrick; Moghadam, Hamed; Tyrowicz, Joanna
    JEL: J22 J26
    Date: 2023
  8. By: Léa Cimelli
    Abstract: To investigate compensation through survivor’s pensions at widowhood in France, this paper uses an administrative dataset to exploit a large sample of survivors whose income is known several years before and after widowhood. An event study first identifies the effects of widowhood on men’s and women’s living standards. Then, I measure how much this effect is offset by the survivor’s pension. To distinguish between total and partial overcompensation, I analyse the heterogenous effects of widowhood according to pre-widowhood share of couple income. The results show that both men’s and women’s living standards tend to increase upon widowhood. For both groups, survivors earning less than 40% of their couple income tend to be fully compensated by a survivor’s pension, while those earning more tend to be overcompensated. Survivor’s pensions largely ensure that women’s living standards do not plummet upon widowhood while also helping to prevent them from falling below the poverty threshold.
    Date: 2023
  9. By: Miguel Ángel García Díaz
    Abstract: Las prestaciones de la Seguridad Social constituyen, tanto por su dimensión cuantitativa como por el número de beneficiarios, un pilar fundamental del Estado del Bienestar al mejorar la calidad de vida de las personas. Este objetivo dirigido a mejorar la cohesión e integración social le convierte en una de las políticas mejor valoradas por la población, y también en objeto permanente de polémica respecto a su grado de suficiencia, la sostenibilidad financiera y la distribución de esfuerzos entre las personas y generaciones. Un debate que en muchos casos se realiza sin la información necesaria sobre la compleja distribución de funciones aplicada en el modelo de estado descentralizado vigente en España.
    Date: 2023–12
  10. By: Maciej Albinowski
    Abstract: I investigate the links between part-time employment opportunities and older workers' labour supply adjustments, focusing on the extensive and intensive margins. Utilising data from 30 European countries in the period from 2011 to 2021, I construct a quasi-panel that compares individuals aged 60-64 with those aged 55-59 from five years prior. I find that the employees in sectors offering more part-time jobs are more likely to stay employed and that the total hours worked by these employees decrease at a slower rate than those of the employees in sectors imposing more rigid hours constraints. These results are most pronounced for women in manual occupation types but are significant across all examined worker categories. The positive relationship between part-time employment opportunities and the total hours older employees work is robust to various modifications in the empirical setup. However, this relationship is heterogeneous across countries and is least pronounced in the countries with a high availability of part-time jobs.
    Keywords: older workers, labour supply, part-time employment, minimum hours constraints
    JEL: J22 J26
    Date: 2023–11
  11. By: Black, B.; French, E.; McCauley, J.; Song, J.
    Abstract: This paper estimates the effect of Disability Insurance and Supplemental Security Income receipt on mortality for individuals on the margin of being allowed versus denied benefits. Exploiting the random assignment of administrative law judges to disability insurance cases, we find that benefit allowance increases 10-year mortality rates by 2.8 percentage points for marginal beneficiaries. However, using a Marginal Treatment Effects approach, we and evidence that benefit receipt reduces mortality for inframarginal beneficiaries, who are typically less healthy than marginal beneficiaries. Furthermore, we find suggestive evidence that allowance reduces mortality among those with expensive health conditions such as cancer.
    Keywords: Disability, Benefits, Mortality
    JEL: H51 H55 I12 I13 J14 J22
    Date: 2023–11–27
  12. By: French, E.; Jones, J B.; McGee, R.
    Abstract: Retired households, especially those with high lifetime income, decumulate their wealth very slowly, and many die leaving large estates. The three leading explanations for the ‘retirement savings puzzle†are the desire to insure against uncertain lifespans and medical expenses, the desire to leave bequests to one’s heirs, and the desire to remain in one’s own home. We discuss the empirical strategies used to differentiate these motivations, most of which go beyond wealth to exploit additional features of the data. The literature suggests that all the motivations are present but has yet to reach a consensus about their relative importance.
    Date: 2023–11–27
  13. By: Huenchuán, Sandra
    Date: 2023–07–31

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