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on Economics of Ageing |
| By: | Do Won Kwak; Jong-Wha Lee |
| Abstract: | An aging workforce has adversely impacted the economy in Korea, amid growing fiscal challenges associated with providing pension and healthcare for older people. The increasing elderly population has raised concerns about the diminishing quality of life among seniors. This study explores the impact of retirement and re-employment on the life satisfaction of older individuals, utilizing longitudinal data from 2008 to 2020. To address endogeneity concerns, we use statutory eligibility ages for retirement pension benefits and the expected monetary value of these benefits as instrumental variables for retirement and re-employment status. Our findings suggest that retirement leads to a significant reduction in overall life satisfaction among older individuals. Conversely, life satisfaction improves significantly when retired individuals are re-employed. This study examines the dynamic effects of retirement on life satisfaction by employing the event study framework and investigating the reversal of retirement through re-employment. The findings emphasize that the life satisfaction of older individuals can be enhanced through policies that enable them to extend their employment or pursue new opportunities after retirement. |
| Keywords: | aging, retirement, re-employment, life satisfaction, longitudinal study, pension |
| JEL: | I31 J14 J21 J26 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2024-14&r=age |
| By: | Rostand Arland Yebetchou Tchounkeu (Department of Economics and Social Sciences, Universita' Politecnica delle Marche); Raffaella Santolini (Department of Economics and Social Sciences, Universita' Politecnica delle Marche); Giulio Palomba (Department of Economics and Social Sciences, Universita' Politecnica delle Marche); Elvina Merkaj (Department of Economics and Social Sciences, Universita' Politecnica delle Marche) |
| Abstract: | The aim of this study is to assess the impact of healthcare efficiency on the mortality rate of elderly people aged 65 and 75 years old and over. To do this, we estimate a dynamic panel data model using the system generalised method of moments (SYS-GMM) on 106 Italian provinces over the period 2012-2019. To measure the efficiency index in the health sector, we apply the Data Envelopment Analysis (DEA) method. We also calculate the index via a bootstrap DEA method for robustness checks. Our results show that, on average, a 10% increase in healthcare efficiency at the Italian provincial level reduces the mortality rate of older adults by approximately 2% to 3%. Improving healthcare efficiency is crucial in enhancing the health services for the elderly and reduce mortality for this age group. Our findings could be helpful to policymakers in adopting measures that aim to increase healthcare efficiency, taking into account the specific needs of an aging population. |
| Keywords: | health efficiency, elderly mortality, DEA, dynamic panel data analysis |
| JEL: | I10 I18 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:485&r=age |
| By: | Gustafsson, Johan (Department of Economics, Umeå University) |
| Abstract: | The present paper studies how to encourage longer careers by reducing labor income taxes for older workers. The analysis relies on numerical experiments within a general equilibrium overlapping generations model that is calibrated to an average OECD economy. I find that the policy can delay retirement and increase tax revenue if treatment occurs close to, and before, the preferred retirement age. A non-trivial share of the increased post-treatment labor supply can be explained by the substitution of hours worked from the pre-treatment career to the post-treatment career. Lowering the treatment age only leads to small changes in the aggregate labor supply, but is increasingly costly for the government in terms of forgone revenue. Tax shifting toward higher consumption taxes always increases welfare, while tax shifting toward higher capital or labor income taxes paid by younger workers only increases welfare if treatment occurs sufficiently late in the career. |
| Keywords: | age-dependent taxation; OLG model; retirement |
| JEL: | E21 H24 J22 |
| Date: | 2024–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:1023&r=age |
| By: | Edoardo Frattola (Bank of Italy) |
| Abstract: | This paper investigates whether parental retirement affects the timing of adult couples' fertility decisions and whether the effect is heterogeneous across family policy regimes in Europe. I use SHARE data for the period 2004-2018 and consider 11 countries belonging to three different regimes (Continental, Mediterranean and Nordic). Results from a RDD on a balanced panel of dynasties suggest that parental retirement has a significant and positive causal effect only in Mediterranean countries, where it is driven by an increase in the availability of informal childcare. These findings are consistent with the hypothesis that parental support matters more in countries with weaker family policies and stronger family ties, and hint that increases in retirement age might have unintended negative consequences on fertility rates in Southern Europe through an effect on the timing of fertility. |
| Keywords: | retirement, fertility, grandparents, informal childcare, SHARE |
| JEL: | J13 J14 J26 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1417_23&r=age |
| By: | Dalle, Axana (Ghent University); Verhofstadt, Elsy (Ghent University); Baert, Stijn (Ghent University) |
| Abstract: | To extend the labour market participation of seniors, numerous countries provide subsidies to incentivise their recruitment or employment. Prior research demonstrates that the effectiveness of such subsidies is rather unsatisfactory, although the reasons for this inadequacy remain unclear. Therefore, we examined negative employer perceptions triggered by eligibility for such subsidies that might explain this disappointing effectiveness. To this end, we set up a vignette experiment in which 292 genuine recruiters assessed fictitious candidates on their hireability and underlying productivity estimations. These candidates differed experimentally in their eligibility for a hiring subsidy targeted at the unemployed aged 58 or over. Our results indicate that the subsidy has a negative effect on their hiring outcomes. This adverse effect is explained by negative perceptions that counteract the financial incentive. Specifically, the subsidised candidates signal lower physical and technological skills along with an augmented difficulty in hiring and labour inspection. |
| Keywords: | hiring discrimination, senior workers, labour market programmes, hiring subsidy, signalling effect, vignettes |
| JEL: | J14 J38 J71 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16804&r=age |
| By: | Martin Boyer (HEC Montréal - HEC Montréal); Philippe de Donder (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Claude-Denys Fluet (ULaval - Université Laval [Québec]); Pierre-Carl Michaud; Marie-Louise Leroux (UQAM - Université du Québec à Montréal = University of Québec in Montréal) |
| Abstract: | This article studies the some of the reasons underlying the under-provision of LTC insurance in Québec and Ontario. Using 2016 survey data, we demonstrate that misperception biases regarding demographic risks (of mortality and of dependency) cannot alone explain the low demand for this insurance product. Even if individual perceptions of these risks are heterogenous, individuals tend on average to over-estimate their survival probability and the probability of entering a LTC home, which should lead to over-insurance rather than to under-insurance for LTC. We show instead that the most probable reason for the under-provision of LTC insurance is that individuals do not know this financial product. Hence, if policy makers were to foster the purchase of LTC insurance, they should run advertising campaigns to inform the public about these products. Another interesting policy could be to develop bundled insurance products. |
| Keywords: | biais de perception, probabilité de survie, probabilité de perte d’autonomie, demande d’assurance, soins de longue durée, dépendance |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04459427&r=age |
| By: | Pauline Mendras (INSEE Paris - INSEE Paris, IPP - Institut des politiques publiques) |
| Abstract: | Présentation En 2021, près de 2 millions de personnes âgées de 60 ans ou plus déclarent être limitées dans les activités de la vie quotidienne (11 %) et 1, 3 million sont bénéficiaires de l'Allocation personnalisée d'autonomie (APA, 7, 5 %). L'allongement de la durée de vie vers des âges où la probabilité de perdre son autonomie augmente, devrait induire une progression du nombre de personnes âgées dépendantes et de bénéficiaires de l'APA dans les années à venir. Cette augmentation est estimée par la DREES à plus de 350 000 bénéficiaires de l'APA supplémentaires d'ici à 2040, soit une augmentation de 29 % par rapport à 2020. Face à ces dynamiques, se pose la question des besoins d'accompagnement que ces personnes âgées nécessiteront et du financement public à provisionner pour la prise en charge de la perte d'autonomie. Cette note propose plusieurs scénarios d'évolution des dépenses publiques de prise en charge de la perte d'autonomie et estime les effectifs d'aides professionnelles nécessaires à l'accompagnement des personnes âgées d'ici à 2040, dans trois différents lieux de vie. Résultats clés Face aux prévisions d'évolution du nombre de personnes âgées dépendantes et dans l'optique d'un « virage domiciliaire », les effectifs d'aides professionnelles nécessaires à la prise en charge de la perte d'autonomie à domicile et en Ehpad devraient augmenter respectivement de 42 % et de 14 % d'ici à 2040 par rapport à 2020. À politique publique de prise en charge inchangée, l'augmentation du nombre de bénéficiaires de l'APA conduirait à une hausse de 30 % des dépenses totales d'APA entre 2020 et 2040. Mais le « virage domiciliaire » signifie que vivront à domicile des personnes aux besoins plus importants qu'aujourd'hui : il nécessitera des revalorisations des salaires pour permettre le recrutement de professionnels. En intégrant ces changements, la dépense totale d'APA augmenterait de 4, 8 milliards d'euros d'ici à 2040, soit 80 % par rapport à 2020 (en euros réels). Ces nouveaux besoins pourraient également se traduire par une diminution de la sousexécution des plans d'aide d'APA notifiés. En supposant que les plans d'aide notifiés sont exécutés en totalité, les dépenses d'APA pourraient quasiment doubler entre 2020 et 2040 pour atteindre 12, 4 milliards d'euros. A l'horizon 2040, une politique d'accompagnement du virage domiciliaire de ce type coûterait 4, 6 milliards d'euros de plus que celle à prise en charge inchangée, soit 60 % de plus. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ipppap:halshs-04439144&r=age |