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on Economics of Ageing |
| By: | Giorgio Fabbri (Univ. Grenoble Alpes, CNRS, INRAE, Grenoble INP, GAEL); Marie-Louise Leroux (Departement des Sciences Economiques, ESG-UQAM; CORE, Louvain-la-Neuve; CESifo, Munich); Paolo Melindi-Ghidi (Aix-Marseille Univ., CNRS, AMSE, Marseille, France); Willem Sas (University of Stirling; Hasselt University; CESifo, Munich; UCLouvain & KU Leuven) |
| Abstract: | This paper develops an overlapping generations model that links a public health system to a pay-as-you-go (PAYG) pension system. It relies on two assumptions. First, the health system directly finances curative health spending on the elderly. Second, public pensions partially depend on health status by introducing a component indexed to society's average level of old-age disability. Reducing the average disability rate in the economy then lowers pension benefits as the need to finance long-term care services also drops. We study the effects of introducing such a 'comprehensive' Social Security system on individual decisions, capital accumulation, and welfare. We first show that health investments can boost savings and capital accumulation under certain conditions. Second, if individuals are sufficiently concerned with their health when old, it is optimal to introduce a health-dependent pension system, as this will raise social welfare compared to a system where pensions are not tied to the society's average level of old-age disability. Our analysis thus highlights an important policy recommendation: making PAYG pension schemes partially health-dependent can be beneficial to society. |
| Keywords: | Curative Health Investments, PAYG Pension System, Disability, overlapping generations, long-term care |
| JEL: | H55 I15 O41 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:aim:wpaimx:2407 |
| By: | Bansak, Cynthia; Dziadula, Eva; Wang, Sophie Xuefei |
| Abstract: | This study documents increased intergenerational support for elderly parents in China among adults who were exposed to the "Later, Longer, Fewer" (LLF) family planning campaign in the 1970s. Using the China Health and Retirement Longitudinal Study, we identify adults of childbearing age whose fertility was reduced. We find LLF exposure increases the likelihood of wife's parents residing in the same household. As expected in a patrilineal society, the increase in support is realized by the husband's parents through more visits and financial transfers. Supporting our findings of stronger social networks, LLF exposure significantly increases the elderly parent's age at death. |
| Keywords: | Fertility, China, "Later, Longer, Fewer" campaign, Family planning, Co-residency, Intergenerational transfers, Aging population |
| JEL: | H31 I31 J13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1403 |
| By: | Celidoni, Martina; Costa-Font, Joan; Salmasi, Luca |
| Abstract: | Longevity expectations (LE) are subjective assessments of future health status that can influence a number of individual health protective decisions. This is especially true during a pandemic such as COVID-19, as the risk of ill health depends more than ever on such protective decisions. This paper examines the causal effect of LE on some protective health behaviors and a number of decisions regarding forgoing health care using individual differences in LE. We use data from the Survey of Health Ageing and Retirement in Europe, and we draw on an instrumental variable strategy exploiting individual level information on parental age at death. Consistent with the too healthy to be sick hypothesis, we find that individuals, exhibiting higher expected longevity, are more likely to engage in protective behaviours, and are less likely to forgo medical treatment. We estimate that a one standard deviation increase in LE increases the probability to comply always with social distancing by 0.6%, to meet people less often by 0.4% and decreases the probability to forgo any medical treatment by 0.6%. Our estimates vary depending on supply side restrictions influencing the availability of health care, as well as individual characteristics such as their gender and the presence of pre-existing health conditions. |
| Keywords: | coronavirus; Covid-19; longevity expectations; private information; health behaviours; foregone medical treatment; health capital; SHARE; Europe; instrumental variables; forgone medical treatment |
| JEL: | I12 I18 |
| Date: | 2022–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:115979 |
| By: | Martha López; Eduardo Sarmiento Gómez |
| Abstract: | Recientemente, en Colombia se ha propuesto la disminución del número de semanas de cotización requeridas para pensionarse de 1.300 a 1.000 semanas para aquellos ciudadanos que tengan más de 65 años. En este documento se analiza dicha reducción propuesta teniendo en cuenta las preferencias de los individuos y los costos fiscales que ello representa. Para ello se analiza el comportamiento de los individuos en el sistema pensional actual y algunos cálculos fiscales. Se utiliza la información de la Planilla Integrada de Liquidación de Aportes (PILA), una técnica econométrica de variables binarias probit y estimaciones de efecto fiscal. En el estudio probit de corte transversal, los resultados indican que la edad de los cotizantes tiene un efecto positivo en la probabilidad de pertenecer el sistema público, de igual manera que el salario. Los resultados muestran que los agentes en el sistema actual cotizan en el sistema privado y se pensionan en el público. La reducción de semanas de cotizaciones tendría un alto costo fiscal, 1, 13% del producto anual, y también sería inequitativa ya que se puede otorgar el beneficio a personas de altos ingresos sin cumplir los requerimientos de semanas actuales. No se recomienda reducir las semanas de cotización. **** Abstact: Recently, a proposal has been put forth in Colombia to reduce the required minimum number of weeks of contributions to retire from 1, 300 to 1, 000 weeks for citizens who reach the age of 65. This document analyzes this proposed reduction of weeks, taking into account the preferences of individuals, and the fiscal costs that this represents. To this end, the behavior of individuals in the current pension system and some fiscal calculations are analyzed. Information from the Integrated Contribution Settlement Form (PILA), an econometric technique of binary probit variables and fiscal effect estimates, are used. In the cross-sectional probit study, the results indicate that the age of contributors has a positive effect on the probability of belonging to the public system, in the same way as salary. The results show how agents in the current system contribute to the private system and retire in the public system. The reduction of weeks of contributions would have a high fiscal cost, 1.13% of the annual product, and would also be inequitable since the benefit can be granted to high-income people without meeting the current requirements of weeks. It is not recommended to reduce the number of weeks of contributions. |
| Keywords: | Semanas de cotización, PILA, probit, Contribution weeks, PILA, probit |
| JEL: | G23 J11 J14 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1268 |
| By: | ZHANG Meilian; YIN Ting; USUI Emiko; OSHIO Takashi; ZHANG Yi |
| Abstract: | Overemployment and underemployment being widely existing phenomena, much less is known about their determinants for older workers. We innovatively employ machine learning methods to determine the important factors driving overemployment and underemployment among older workers in Japan. Those with better economic conditions, worse health, less family support, and unfavorable job characteristics are more likely to report overemployment, whereas increasing age, less disposable income, shorter current work hours, holding a job with a temporary nature, and low job and pay satisfaction are predictive to underemployment. Cluster analysis further shows that reasons for having work hour mismatches can be highly heterogeneous within both overemployed and underemployed groups. Subgroup analyses suggest room for pro-work policies among 65+ workers facing financial stress and lacking family support, female workers with unstable jobs and low spousal income, and salaried workers working insufficient hours. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:24034 |
| By: | Josselin Thuilliez (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, UR - Université de Rennes); Nouhoum Touré (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 - Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | High levels of vaccine hesitancy remain poorly understood during an epidemic. Using high-frequency data in France at departmental level and exploiting the Covid-19 vaccination campaign calendar, we observe that vaccination among the elderly influences vaccination among young adults. We then propose a simple epidemiological economic model with two partially vaccinated demographic groups – the young and the elderly – and two opinions on vaccination - "vaxxers" and "antivaxxers". The utility to get vaccinated for the young depends on the vaccination behavior of the elderly, their opinion of the vaccine and the epidemic environment. Our results suggest that mutual interactions between individuals' vaccination opinions and infection prevalence may lead to the emergence of oscillations and disease traps. The vaccination behavior of the elderly can be harnessed to promote vaccination. |
| Keywords: | Vaccination, Economic epidemiology, Opinion dynamics |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:hal-04490900 |