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on Economics of Ageing |
| By: | Ichimura , Hidehiko (University of Arizona and University of Tokyo); Lei , Xiaoyan (Peking University.); Lee , Chulhee (Seoul National University); Lee , Jinkook (University of Southern California); Park , Albert (Asian Development Bank); Sawada , Yasuyuki (University of Tokyo) |
| Abstract: | East Asia is undergoing a rapid demographic transition and “super” aging. As a result of steadily decreasing fertility and increasing life expectancy, older people’s proportion of the population and the old-age dependency ratio is rising across all countries in East Asia, particularly in the People’s Republic of China (PRC), Japan, and the Republic of Korea (ROK). In this paper, we empirically investigate the well-being of older people in these three countries, using comparable microlevel data from the China Health and Retirement Longitudinal Study (CHARLS), the Japanese Study of Aging and Retirement (JSTAR), and the Korean Longitudinal Study on Aging (KLoSA). Specifically, we examine the depressive symptom scale as a measure of well-being and estimate the impact of four broad categories—demographic, economic, family-social, and health. The decomposition and simulation analysis reveals that although much of the difference in mean depression rates among countries can be explained by differences in the characteristics of older people in the three countries, there remain significant differences across countries that cannot be explained. In particular, even after accounting for a multitude of factors, older people in the ROK are more likely to be depressed than in the PRC or Japan. |
| Keywords: | aging; well-being; depression; suicide; panel data |
| JEL: | D10 I30 J14 |
| Date: | 2024–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0745 |
| By: | Susanti, Yuli (Monash University) |
| Abstract: | In an era of unprecedented financial challenges, health emergencies, and technological disruptions, pension funds are critical to economic stability. Focused on the contexts of Indonesian employee pension funds, the study navigates the intricate dynamics of pension systems within the broader economy. Against an evolving global landscape marked by financial uncertainties and demographic shifts, the research scrutinizes how distinct pension schemes adopted by Indonesian employee pension funds shape the resilience and efficacy of their respective pension funds. The research employs two distinct yet complementary models to investigate the dynamic of pension fund outcomes amidst varying macroeconomic conditions and micro-level management practices. Firstly, a Vector Autoregression (VAR) model is utilized to explore the intricate interactions between macroeconomic variables. The VAR model allows for the simultaneous examination of multiple variables to understand the short and long-term effects on pension fund dynamics. Secondly, a micro-level panel data regression model is employed to delve deeper into specific factors influencing pension fund performance, including contribution rates, investment strategies, coverage, regulatory frameworks, and risk management practices. The analysis incorporates treatment variables related to the COVID-19 pandemic to examine the resilience of pension funds to external shocks. The empirical findings reveal significant associations between various macroeconomic factors, micro-level management practices, and pension fund performance outcomes. Notably, higher contribution rates, broader coverage, and effective risk management are found to positively impact pension fund performance, while certain aspects of the funding mechanism and regulatory framework exhibit negative associations. The study contributes to the existing literature by offering insights into the complex interplay between macroeconomic conditions, micro-level management practices, and pension fund outcomes, providing valuable implications for policymakers, practitioners, and stakeholders in the pension fund industry. |
| Keywords: | Pension funds ; Economic stability ; Investment strategies ; Risk management ; Macroeconomic ; VAR model ; Indonesia pension funds JEL classifications: C33 ; E21 ; G22 ; G23 ; G53 ; H55 ; J32 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:wrkesp:80 |
| By: | Sebastian Becker; Annica Gehlen; Johannes Geyer; Peter Haan |
| Abstract: | We provide novel evidence about the incentive and welfare effects of an increase in the generosity of disability benefits. Importantly, a unique policy variation in Germany allows us to isolate the income effect of a change in benefit generosity. We leverage this quasi-experimental policy variation using an RD design to estimate the effect of increasing disability benefits on employment, earnings, labor market transitions, and mortality outcomes using administrative data on the universe of new disability benefit recipients. Contrary to previous literature, our analysis reveals no significant impact on the employment and earnings of DI recipients due to the increased benefits. However, we find a sizable effect of the probability of returning to the labor market. We find no effects on recipient mortality six years after benefit award, but estimates imply a notable reduction in poverty risk, highlighting meaningful welfare implications of increased generosity. |
| Keywords: | disability insurance, pension reform, wealth effect, labor supply, mortality, RDD |
| JEL: | H55 I12 J22 J26 |
| Date: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:bdp:dpaper:0050 |
| By: | Jakob B. Madsen |
| Abstract: | The aging population is expected by many to put an end to the high growth rates experienced in the past century. This paper shows that the aging population and the associated educational and innovative expansion induced by the demographic transition will expand the technology frontier in the 21st century and significantly override the adverse income effects of the aging population. To achieve this, the total income-effects through the channels of innovations, investment, education, and labor force participation are estimated using data over two centuries for 21 OECD countries. |
| Keywords: | aging, productivity growth, education, innovations, endogenous labor market participation |
| JEL: | O00 O10 O30 O40 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2024-61 |
| By: | Scervini, Francesco; Trucchi, Serena (Cardiff Business School) |
| Abstract: | Alcohol consumption among older adults has been drawing public health interest due to the rising use of alcohol in the growing elderly population. This paper adds to the understanding of alcohol consumption in later life by investigating the impact of a specific life event: the transition to an empty nest, when adult children leave the parental home. Our findings show a significant increase in alcohol consumption in an empty nest, equivalent to approximately one additional drink every one to three weeks. This change is characterised by more regular drinking patterns and a modest rise in daily intake. The groups most affected by this change include couples, individuals with high income, those actively employed, and respondents aged 45-60. We also provide evidence on the mechanisms underlying this relationship, supporting a key role of relaxation and changes in time use. |
| Keywords: | Empty nest, alcohol consumption, longitudinal data. |
| JEL: | D1 I12 J14 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cdf:wpaper:2024/20 |
| By: | Eric A. Hanushek; Lavinia Kinne; Frauke Witthoeft; Ludger Woessmann |
| Abstract: | Cross-sectional age-skill profiles suggest that workers' cognitive skills start declining by their thirties if not earlier. If accurate, such age-driven skill losses pose a major threat to the human capital of societies with rapidly aging populations. We estimate actual age-skill profiles from individual changes in skills at different ages. We use the unique German longitudinal component of the Programme of the International Assessment of Adult Competencies (PIAAC-L) that retested a large representative sample of adults after 3.5 years. Two main results emerge. First, correcting for measurement error, average skills increase into the forties before decreasing slightly in literacy and more strongly in numeracy. Second, skills decline at older ages only for those with below-average skill usage. White-collar and higher-educated workers with above-average usage show increasing skills even beyond their forties. Women have larger skill losses at older age, particularly in numeracy. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.00790 |
| By: | Disslbacher, Franziska; Rapp, Severin |
| Abstract: | This paper leverages novel administrative data on terminal wealth in Vienna to show that Gini indices of wealth inequality at death exceed unity, with 20-30% of decedents leaving behind debt. We analyze the drivers of this distribution, finding that life-cycle effects have limited explanatory power. In contrast, bequest motives are associated with higher wealth, and a marginal increase in the share of decedents with bequest motives reduces inequality. Homeownership also correlates with higher wealth (the reverse is true for care-home residency), though housing wealth does not benefit the bottom of the distribution across districts. Finally, means-tested long-term care transfers significantly amplify terminal wealth inequality. (Stone Center on Socio-Economic Inequality Working Paper) |
| Date: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:z3wfv |