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on Economics of Ageing |
| By: | Cristina Bellés-Obrero; Manuel Flores; Pilar García-Gómez; Sergi Jiménez-Martín; Judit Vall-Castelló |
| Abstract: | This chapter studies social security reforms and trends in inequalities among older workers over the last decades in Spain. Its main goal is to analyze the redistributive impact of the various pension reforms on older income inequality. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:fda:fdaeee:eee2024-33 |
| By: | Malavasi, Chiara; Ye, Han |
| JEL: | I10 I12 J14 J26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302374 |
| By: | Pablo Garcia Sanchez; Luca Marchiori; Olivier Pierrard |
| Abstract: | We study the effects on capital accumulation from public health in an overlapping generations model. Investing in the health of young individuals raises longevity and lowers frailty, influencing capital accumulation through three main channels. First, since it is tax-financed, public health investment reduces disposable income and the capacity to save (cost channel). Second, it prolongs life expectancy, encouraging individuals to save for old age (longevity channel). Third, it reduces frailty and the need to save to finance long-term care (frailty channel). Longevity and frailty have ambiguous effects on taxation when the government subsidizes long-term care. We analytically derive the economic implications of these health channels and numerically illustrate our findings. Our main result is that although public investment in healthy aging is costly, it can stimulate capital accumulation even without directly affecting productivity. Classification-JEL: H51, I15, O41. |
| Keywords: | Overlapping generations, public health, health channels, capital accumulation. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp189 |
| By: | Iris Kesternich; Marjolein Van Damme; Han Ye |
| Abstract: | One reason gender pay gaps persist is that women receive more of their total compensation through amenities. Since wages, but not amenities, increase retirement incomes, this may translate into gender pension gaps. Using a discrete choice experiment we investigate whether the valuation for amenities changes when the trade-off with pension income is made salient. We find that women value amenities more than men. Beliefs about the effect of wage changes on pension income do not show large gender differences. However, women change their choices much more strongly than men when reminded about the effects of current choices on pension income. |
| Keywords: | gender, pension gap, amenities, work meaning, workplace flexibility, hypothetical choice experiment, salience, beliefs |
| JEL: | D91 J16 J26 J32 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_600 |
| By: | Felder, Lars; Geyer, Johannes; Haan, Peter |
| JEL: | H55 J13 J21 J26 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302369 |
| By: | Marie Briere; James Poterba; Ariane Szafarz |
| Abstract: | This paper presents new evidence on how employees respond to tax incentives for retirement saving. Using administrative data from a large retirement plan administrator in France, we examine the voluntary saving choices of approximately 1.4 million workers before and after the implementation of the 2019 Loi Pacte, a reform that introduced tax-deductible voluntary contributions into employer-sponsored retirement plans. One of the features of this multi-part reform was a change in the provisions for voluntary individual contributions to employer-sponsored saving plans. Prior to the implementation of the Loi Pacte, voluntary contributions could only be made on a post-tax basis. Wage earnings, for example, would be taxed before a worker could make a contribution, so that the contribution was post-tax. The reform introduced the possibility of making pre-tax contributions. In this case, labor income could be contributed to the plan without any payment of tax. The tax liability on this income was deferred until the funds were withdrawn from the account, typically when the worker was retired. This postpones the tax payment, often by several decades, and, given the progressivity of income tax rates and the fact that the income of many retirees is lower than their income while working, can also result in a lower tax burden on the earned income. The net effect the Loi Pacte was therefore to increase the rate of return on saving through employer-sponsored plans. On a net-of-tax return basis, post-tax contributions often dominate pre-tax contributions. The reform increased contributions to retirement saving accounts, especially among higher-income, older workers and those who contributed to a voluntary saving plan on a post-tax basis before the pre-tax option became available. There was no decline in contributions to “medium term” saving plans, which are provided by employers and can be accessed after five years, suggesting little substitution between these accounts. |
| Keywords: | Retirement savings; Tax incentives; France; Long-term savings; Rothification; Voluntary contributions |
| JEL: | E21 G28 J32 H24 G41 H31 |
| Date: | 2024–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:sol:wpaper:2013/378653 |
| By: | Yang, Jinyang; Chen, Xi |
| Abstract: | We examine the multi-generational association of a nationwide social pension program in China, the New Rural Pension Scheme (NRPS). NRPS was rolled out on full scale in 2012, and rural enrollees over the age of 60 are eligible to receive an average of 102 CNY non-contributory monthly pension. We leverage age eligibility and variations in pension receipt to identify the intergenerational associations between NRPS and health among grandchildren. We find NRPS substantially increases child weight without impacting height. Overall, the child BMI z score increases by 0.87, which is largely driven by grandfathers' pension receipt raising rates of overweight and obesity among grandsons. Among the potential mechanisms, our findings are more plausibly explained by a mixture of income increase, knowledge bias of co-residing grandparents on childcare, and son preference. Potential biases from differential reporting of primary caregivers and epigenetic transmissions unlikely drive our findings. |
| Keywords: | Social pension, Child health, Inter-generational relationship, Intra-household allocation, Migration, Living arrangement, China |
| JEL: | H23 H31 H55 I38 J22 O15 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1503 |
| By: | Heller, Lorena; Nogales, Ricardo |
| Abstract: | Over 30 percent of female workers are self-employed across Latin America, relying on this mode of work for subsistence. Self-employment in the region is regularly marked by the absence of health insurance and lack of pension benefits. Despite the aspirations of many women to gain access to these benefits, they are persistently overrepresented among the socially unprotected part of the workforce. To address this issue and explore potential solutions, we conducted a laboratory experiment in Bolivia to assess the efficacy of nudges to influence the behavior of self-employed women. Participants were randomly assigned to one of six groups, each receiving either an informative message highlighting the benefits of contributing to a long-term pension system, a message emphasizing the advantages of health insurance, or a nudge aimed at reducing the effort and costs associated with enrolling in a savings or retirement plan. Our findings indicate that informative messages alone were effective in increasing voluntary contributions to experimental pension and health insurance schemes. Reductions in time and effort required for enrollment did not lead to a significant increase of voluntary contributions. Moreover, we found that the effectiveness of these interventions varied depending on the type of worker, with high-effort workers being the most responsive. |
| Keywords: | Self-employment;Pension system;Health Insurance;Laboratory experiment |
| JEL: | C91 J16 J20 J70 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13754 |
| By: | Van Loon Veerle;; Koen Decancq; |
| Abstract: | Well-being comparisons of older people are at the heart of many aging and social policies. This study introduces the ‘Well-Being at Older Age’ (Well-BOA) instrument, a new tool that allows policymakers to compare well-being across older people while respecting their preferences regarding the relative importance of six well- being dimensions: health, social relations, income, leisure, engagement, and religion. The Well-BOA instrument was validated through an online factorial survey experiment among individuals aged 50 years and older in the Flemish Region of Belgium. The results reveal that health, social relations, and income are crucial to older people’s well-being. Lower well-being was found among those with limited education and residing in larger households and the unemployed, single, and childless. The Well-BOA instrument had stronger associations with factors such as disability and financial difficulties than a subject measure based on life satisfaction and objective measurement that treats the six well-being dimensions as equally important. These differences underscore the implications of the choice of well-being. measure for policy design and evaluation |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:hdl:wpaper:2404 |
| By: | Delphine Bosson-Rieutort; Sébastien Barbat-Artigas; Juliette Duc; Yuliya Bodryzlova; Fereshteh Mehrabi; Erin C. Strumpf |
| Abstract: | People aged 65 and over will account for one quarter of Quebec’s population in 2031. This major demographic shift raises significant concerns and challenges for the organization of health care. The prevalence of multiple chronic diseases has been on the rise for several years and it increases with age. In the latter years of life, this aging population is at risk of experiencing an increase in multiple health problems, requiring increasingly complex and costly needs and care. The health and social services system will need to continually adjust its service offerings to meet these changing needs. In this study, the authors use clinical and administrative data to reconstruct the last year of care trajectories of those over 65 years of age at the time of death and then estimate the individual cost of using health and social services by age, gender, health region and cause of death. The study was conducted as part of a partnership between the École de santé publique de l’Université de Montréal (ESPUM) and the Institut national d’excellence en santé et services sociaux (INESSS). Les personnes de 65 ans et plus représenteront le quart de la population québécoise en 2031. Ce changement démographique majeur soulève des inquiétudes et défis importants en ce qui concerne l’organisation des soins de santé. La prévalence de la multiplicité des maladies chroniques est en augmentation depuis plusieurs années et elle augmente avec l’âge. Durant les dernières années de vie, cette population vieillissante risque de présenter une augmentation de problèmes de santé multiples, nécessitant des besoins et recours aux soins de plus en plus complexes et coûteux. Le système de santé et de services sociaux devra alors ajuster continuellement son offre de services afin de répondre à ces besoins changeants. Dans cette étude, les auteurs utilisent des données clinico-administratives afin de reconstruire les trajectoires de recours aux soins durant la dernière année de vie des personnes qui avaient plus de 65 ans au moment du décès puis estimer le coût individuel associé à l’utilisation des services de santé et services sociaux selon l’âge, le sexe, la région sociosanitaire et la cause de décès. L’étude a été réalisée dans le cadre d’un partenariat entre l’École de santé publique de l’Université de Montréal (ESPUM) et l’Institut national d’excellence en santé et services sociaux (INESSS). |
| Keywords: | Healthcare, Health, Costs, Clinical and administrative data, Soins de santé, Santé, Coûts, Données clinico-administratives |
| Date: | 2024–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirpro:2024rp-20 |
| By: | Mr. Serhan Cevik |
| Abstract: | Lithuania’s immediate fiscal challenges are national security and higher costs of borrowing, but fiscal prospects are further exacerbated by long-term pressures stemming from climate change and a shrinking and aging population. The country has experienced a rapidly decreasing population—from 3.7 million in 1991 to 2.8 million in 2023—and its old-age dependency ratio is consequently expected to increase from 33 percent in 2023 to 53.4 percent by 2050. The resulting long-term spending pressures are projected to amount to as much as 11.2 percent of GDP, which is about 30 percent of the current level of spending. Debt sustainability concerns would not allow financing additional spending with more debt. Hence, a comprehensive strategy will help address these long-term fiscal challenges, including tax policy changes to raise additional revenue while primarily reducing expenditure needs through pension and healthcare reforms. |
| Keywords: | Military spending; interest rates; climate change; demographics; pension; healthcare; tax policy; fiscal sustainability; Lithuania |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/201 |
| By: | Guy Lacroix; Pierre-Carl Michaud |
| Abstract: | We provide empirical evidence on the effectiveness of a tax measure aimed at increasing the employment rates of older workers in Quebec, Canada. We use several data sources and various identification strategies. First, we use a Quebec-Ontario difference-in-differences design and do not detect robust effects on employment for most age groups except for those aged 60 to 64, but the common trend assumption is found not to hold. For this last group, we use an alternative identification strategy that exploits the variation in treatment intensity over time using longitudinal administrative tax data for Quebec only. Doing so, we do not f ind any effect on transitions in or out of the labour force. We do find a small positive effect on earnings (intensive margin) but a negative one on the affected workers’ net tax liability. Finally, addressing the invalid comparison with Ontario, we investigate the impact of the credit using a staggered adoption design exploiting differences across cohorts within Quebec. The results are consistent with the alternative approach. We conclude that the tax measure does not appear to be a cost-effective way of raising public revenues nor of increasing the employment rates of older workers. |
| Keywords: | older workers, labour market participation, tax incentives. |
| JEL: | J14 J16 H31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:rsi:cjpcha:02 |
| By: | Taiwo, Kayode |
| Abstract: | Education is crucial to national development and teachers are the principal component in educational production. Teacher quality manifests in student achievements and educational outcomes Improving the quality of education rests on attracting and retaining good teachers who can help students navigate their ways in a changing world and produce graduates that can drive development and technological revolutions. Selection into the teaching profession is facing severe threats, and there is a growing teacher shortage. A complex interaction of demand and supply factors causes teacher shortages. In addressing the shortage of teachers, the government introduced a demand side intervention by enacting and activating The Harmonised Retirement Age for Teachers in Nigeria Act. The law extends the tenure and retirement age of teachers in the face of crippling teacher shortage in schools. This study assessed this development in relation to tenure and teacher quality in Nigeria. The working conditions of teachers are poor and demotivating. Data reveals that many of the current teachers have poor attributes. The study concludes that keeping incapable and poorly trained teachers longer in teaching service will not benefit educational development and student outcomes. The government intervention only masks deeper issues affecting selection into the teaching profession, which should be addressed. |
| Keywords: | Labour law, Retirement age, Teacher quality, Teacher shortage, Tenure |
| JEL: | I28 J48 J58 M59 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121931 |
| By: | Wei Cheng; Bruce A. Weinberg |
| Abstract: | The adoption of new ideas is critical for realizing their full potential and for advancing the knowledge frontier but it involves analyzing innovators, potential adopters, and the networks that connect them. This paper applies natural language processing, network analysis, and a novel fixed effects strategy to study how the aging of the biomedical research workforce affects idea adoption. We show that the relationship between adoption and innovator career age varies with network distance. Specifically, at short distances, young innovators’ ideas are adopted the most, while at greater network distances, mid-career innovators’ ideas have the highest adoption. The main reason for this contrast is that young innovators are close to young potential adopters who are more open to new ideas, but mid-career innovators are more central in networks. Overall adoption is hump-shaped in the career age of innovators. Simulations show that the aging of innovators and of potential adopters have comparable effects on the adoption of important new ideas. |
| JEL: | D85 J11 O33 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33030 |
| By: | Carstensen, Jeanette (Institute for Employment Research (IAB), Nuremberg, Germany); Seibert, Holger (Institute for Employment Research (IAB), Nuremberg, Germany); Wiethölter, Doris (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "The health and care sector is one of the employment areas that has grown particularly strongly in recent years. In view of the acute need for workers in the nursing professions, it is particularly important that foreign employees have been making a significant contribution to meeting the personnel requirements in the nursing professions for several years. Our study provides an overview of the development of foreign employees in the nursing professions - differentiated by nationality (EU and third countries) and the level of requirements of the job. With the further development of the Skilled Immigration Act (2023), legal changes to the labor migration of people from third countries came into force in Germany from November 2023. In Germany, however, a formal recognition process to check the equivalence of the foreign professional qualification is still necessary for nursing staff, as for other regulated professions (Bushanska et al. 2023: 19). More and more people from countries outside the EU are now working in nursing, with many nursing employees having nationality from the nursing recruitment countries (including Bosnia-Herzegovina, the Philippines, Vietnam) and European countries outside the EU (Turkey, Serbia, Albania). In nursing, the proportion of skilled workers is high, especially among employees from the Western European EU countries (EU-14 countries 2). Among geriatric nurses, people from the nursing recruitment countries and Turkey in particular are relatively frequently employed as skilled workers. The job market in the nursing sector is still dominated by women and part-time workers. 82 percent of employees are female and a good half of nursing staff work part-time (part-time rate of employees overall: 30 %). The wages of employees in geriatric nursing are still significantly lower than those of nursing staff. In comparison, nursing staff from the EU-14 countries receive the highest salaries. These people are comparatively often employed as specialists in hospitals - here the remuneration is generally higher than in the area of inpatient and outpatient geriatric care. The effects of demographic change are also reflected in the increase in older employees in nursing. As can be seen from the age structure and nationality of the nurses, foreign nursing staff are significantly counteracting the unfavourable demographic development among German nursing staff. The number of older employees at assistant and specialist level with German nationality has increased sharply in the last ten years. At the same time, the proportion of young employees among all employed foreigners has increased significantly. Foreign specialists are rarely represented in nursing. But due to the high percentage increase in older German employees, the shortage of skilled workers in this group is likely to become even more severe in the coming years. At the same time, the regional importance of foreign employees in nursing and geriatric care professions varies. In eastern Germany, foreign nursing staff are underrepresented almost everywhere, apart from Berlin and the districts close to Berlin. In the western districts, the distribution is more even overall. The majority of foreign nurses and geriatric care workers work in metropolitan and urban regions (e. g. Munich, Frankfurt/Main, Stuttgart, Nuremberg)." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| Date: | 2024–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabfob:202422 |