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on Economics of Ageing |
| By: | Gallo, Giovanni; Nagore García, Amparo |
| Abstract: | This paper investigates the retirement response to the pandemic and to the resulting acceleration in the adoption of new technologies. Using the European Union Statistics of Income and Living Conditions datasets and leveraging the natural experiment of many workers being forced to work from home in Europe during the lockdown, we compare the retirement response of older workers in digital occupations (i.e. more exposed to the accelerated adoption of new technologies) versus non-digital occupations to detect any differences in retirement behavior, which we interpret as digitalization effects. In addition, we analyze changes in retirement decisions by gender and geographic area. We find that retirement rates increased during COVID-19 in Europe, especially in Mediterranean countries and among women. This trend may be linked to gender occupational segregation. In Mediterranean countries, digitalization increases female retirement, likely due to challenges in balancing digital work and family responsibilities while working from home. In Eastern countries, and to a lesser extent in Northern countries, digitalization leads to postponing retirement among women, likely due to greater gender equality in unpaid work. In contrast, the retirement age for men is less affected by the pandemic with no significant differences between digital and non-digital occupations. This may exacerbate the existing gender gap in labor force participation and pension outcomes. |
| Keywords: | Remote working, Early retirement, Working conditions, COVID-19, Digitalization |
| JEL: | J14 J24 J26 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1553 |
| By: | Han, Joseph |
| Abstract: | In the Republic of Korea, middle-aged and older workers experience unusually high job insecurity due to limited labor demand for them. To address this issue, labor market policies and practices must be reformed to make it easier for firms to hire these workers as regular employees. Instead of imposing regulatory mandates, it is crucial to enhance the functioning of labor markets to reduce involuntary early retirements among older workers and prevent career disruptions for middle-aged women. These reforms will also facilitate the gradual extension of the mandatory retirement age, a necessary step in light of Korea's rapidly aging population. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kdifoc:308154 |
| By: | Sarah Le Duigou (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Pierre-Jean Messe (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université, TEPP - Théorie et évaluation des politiques publiques - CNRS - Centre National de la Recherche Scientifique, CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM]) |
| Abstract: | This paper examines how unemployment insurance rules influence the employment effects of pension reforms prior to retirement. We develop a job-search model with a finite horizon introducing age-specific unemployment insurance rules and endogenous separations. The latter result from the employer's decision to offer a mutually agreed termination after an adverse productivity shock and from the worker's choice to accept the offer. We estimate the structural parameters of the model using French data on quarterly job separation and finding rates for workers aged 55-59 years. The model fits the data at more than 99%. It allows to reproduce the observed peak in employment outflows when the distance to the legal retirement age equals the potential benefit duration of the UI system. We demonstrate that combining an increase in the retirement age with a reduction in the generosity of the unemployment insurance scheme is an efficient policy for raising older workers' employment rates. We also put forward that the horizon effect, i.e. the positive effect of a rise in the legal retirement age on employment prior to retirement, is greater when the job-search requirements are low or when the potential benefit duration is high. |
| Keywords: | Pension Reform, Unemployment Benefits, Older Workers’ Employment |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04814517 |
| By: | Slopen, Meredith |
| Abstract: | Background and Objectives: As life expectancy has increased, there has been political pressure to raise the age for retirement benefit claims. Paid sick leave (PSL) may support older workers in maintaining employment intensity by offering workers the flexibility to address health and caregiving needs. However, little is known about the role of PSL access on older workers' employment and income. Research Design and Methods: The study uses data from the 2010-2018 National Health Interview Survey (NHIS), accessed via IPUMS. Stratified multivariate regression models controlling for demographic and employment characteristics are used to explore the association between access to PSL and employment intensity among older workers. Results: Among workers older than age 62, access to PSL is associated with a 28% higher likelihood of working full-time (p<0.001) and an average of 7.3 (18.8%) more hours per week (p<0.001). The strongest associations between access to paid sick leave and employment intensity are observed among female workers and those with educational attainment beyond a high school degree, and weakest among Latinx workers. Discussion and Implications: PSL access is associated with greater employment intensity as workers age, with implications for economic security given the significant increase in hours worked per week. Public policy requiring employers to provide PSL may reduce disparities in access and support the employment of older workers. (Stone Center on Socio-Economic Inequality Working Paper) |
| Date: | 2025–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nux6q |
| By: | Jonathan Cribb (Institute for Fiscal Studies); Laurence O'Brien (Institute for Fiscal Studies); David Sturrock (Institute for Fiscal Studies) |
| Date: | 2025–01–23 |
| URL: | https://d.repec.org/n?u=RePEc:ifs:ifsewp:25/02 |
| By: | Motohiro Yogo; Andrew Whitten; Natalie Cox |
| Abstract: | We study retirement and bank account participation for the universe of U.S. households with a member aged 50 to 59 in the administrative tax data. ZCTA-level average income, income inequality, and racial composition predict retirement account participation for low-income households, conditional on household income and regional price parities. Income inequality also predicts bank account participation for low-income households. We estimate the causal effect of access to an employer retirement plan on participation. Recent policy proposals for universal access with automatic enrollment could increase participation by 19 percentage points in the lowest income quintile over ten years. |
| JEL: | D14 G51 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33256 |
| By: | Lino Galiana (Institut national de la statistique et des études économiques (INSEE)); Lionel Wilner (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper embeds a structural model of private wealth accumulation over the life cycle within a dynamic microsimulation model designed for long‐run projections of pensions. In such an environment, the optimal savings path results from consumption smoothing and bequests motives, on top of the mortality risk. Preferences are estimated based on a longitudinal wealth survey through a method of simulated moments. Simulations issued from these estimations replicate quite well a private wealth that is more concentrated than labor income. They enable us to compute "augmented" standards of living including capital income, hence to quantify both the countervailing role played by private wealth to earnings dropout after retirement and the impact of the mortality risk in this regard. |
| Keywords: | Microsimulation, Intertemporal Consumer Choice, Life-cycle, Inequality, C63 C88 D15 Microsimulation Intertemporal Consumer Choice Life-cycle Inequality, C63, C88, D15 Microsimulation |
| Date: | 2024–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04799408 |
| By: | Mishra, Mukesh Kumar |
| Abstract: | The study evaluates the current status of financial literacy and retirement planning trends in Saharsa district in Bihar through an empirical study. This study aims to examine the relationship between retirement benefits and saving behaviour after analysed a sample of 384 respondents to design a model that examines the relationship between retirement planning and financial literacy trends. The study reveals that behavioural, socio-economic, and financial factors significantly influence investment decisions, with financial literacy and risk also positively impacting these decisions. Financial literacy in India emerged in the 21st century, aiming to improve capital formation through saving and investment among rural households through a well-planned and promoted approach. The knowledge and abilities needed to manage financial resources in developing sectors are referred to as financial literacy. It improves abilities for more effective financial management and development economics policymaking. In welfare economics, this study investigates the connection between literacy and inclusion. The study in Saharsa district in Bihar reveals a significant lack of financial literacy and inclusion among the population, with varied attitudes and behaviours. Findings indicate that Respondents have low awareness of Retirement and Estate Planning, and feel their personal financial plans are imbalanced, requiring expert management and PMJDY is an important instrument for assessing financial literacy in India since it enhances Saharsa district's socioeconomic inclusion. |
| Keywords: | Financial Psychology, Economics and Development, Banking, Financial Literacy |
| JEL: | D12 D14 D63 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:308691 |
| By: | Jonathan D. Ketcham; Nicolai V. Kuminoff; Nirman Saha |
| Abstract: | We develop a new revealed preference framework to estimate the value of statistical life (VSL). Our framework starts from a hedonic model of health care in which heterogenous individuals choose how much to spend on medical services that reduce mortality risk. Their choices generate an equilibrium survival function that can be differentiated to recover their marginal willingness to pay for mortality risk reduction. Our IV estimator uses survey data on Americans over age 66, linked to their federal administrative records. The mean VSL is approximately $1 million at age 67 and increasing in health, income, education, and life expectancy. |
| JEL: | Q51 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33165 |
| By: | Gopi Shah Goda; Ithai Lurie; Priyanka S. Parikh; Chelsea Swete |
| Abstract: | Approximately $76 billion in out-of-pocket medical spending was deducted as an itemized medical deduction (IMD) in 2021, resulting in about $9 billion in federal forgone tax revenue. We use data from U.S. tax returns to examine how these tax savings are distributed across income and age, how the distributions differ from the mortgage interest deduction, and how the distributions changed with the 2017 Tax Cuts and Jobs Act. While a given level of medical spending is less likely to be above the income threshold for higher-income households, itemization rates and marginal tax rates increase with income, resulting in tax savings skewed towards higher-income taxpayers: 94 percent of the tax savings accrue to those in the top half of the income distribution. The tax savings are also highly concentrated at older ages, with 42 percent accruing to those over age 65. Using rich survey data on out-of-pocket medical spending, we illustrate how the distribution of tax savings varies across policy alternatives. We find that expanding eligibility for the tax subsidy would likely reduce the concentration of tax savings at higher incomes and increase the concentration of tax benefits at older ages. |
| JEL: | H22 I18 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33157 |
| By: | Arthur Korteweg; Stavros Panageas; Anand Systla |
| Abstract: | We evaluate private equity (PE) performance using investor-specific stochastic discount factors, and examine whether investors could benefit from changing their allocation to PE. Plans invest in PE funds with higher average risk-adjusted performance. This is mainly due to access to successful PE managers, not superior selection skill. Decomposing returns into risk-compensation and "alpha", we find that some plans obtain higher PE returns by taking more risk without earning higher, and in some cases earning lower, risk-adjusted returns, broadly consistent with agency problems within plans. |
| JEL: | G11 G12 G23 G24 H75 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33194 |
| By: | Valentin Flietner (PwC and Tinbergen Institute); Bernd Heidergott (Vrije Universiteit Amsterdam and Tinbergen Institute); Frank den Hollander (Leiden University); Ines Lindner (Vrije Universiteit Amsterdam and Tinbergen Institute); Azadeh Parvaneh (Leiden University); Holger Strulik (University of Göttingen) |
| Abstract: | In this paper, we advance the network theory of aging and mortality by developing a causal mathematical model for the mortality rate. First, we show that in large networks, where health deficits accumulate at nodes representing health indicators, the modeling of network evolution with Poisson processes is universal and can be derived from fundamental principles. Second, with the help of two simplifying approximations, which we refer to as mean-field assumption and homogeneity assumption, we provide an analytical derivation of Gompertz law under generic and biologically relevant conditions. We identify the parameters in Gompertz law as a function of the parameters driving the evolution of the network, and illustrate our computations with simulations and analytic approximations. |
| JEL: | I10 J10 |
| Date: | 2024–12–20 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20240079 |
| By: | Niels Johannesen; Johan Sæverud; Emmanuel Saez |
| Abstract: | This paper provides evidence that asset testing of social transfers substantially depresses the liquid wealth of the poor. Our setting is Denmark where the low-income elderly receive an annual payment (around $3, 000) if their end-of-year liquid wealth is below a threshold (around $15, 000). Using administrative data on income and wealth for the full population, we document that the wealth density distribution of the low-income elderly exhibits large but diffuse excess mass below the wealth threshold: The fraction with wealth between 50% and 100% of the wealth threshold is twice as high as for ineligible control groups who are slightly younger or have slightly higher income. A reform analysis supports a causal interpretation: excess mass below the threshold emerges around the introduction of the program and shifts when the threshold is increased discretely. The excess mass remains when we rely solely on third-party reported data to measure liquid wealth and therefore does not reflect strategic misreporting by the recipients. Finally, analyzing bank customer data with monthly information about wealth, spending and cash withdrawals shows that the excess mass largely reflects permanently lower levels of liquid wealth rather than temporary responses around the end of the year. |
| JEL: | H20 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33189 |
| By: | Grégory Ponthière (ENS Rennes - École normale supérieure - Rennes, 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) |
| Abstract: | Nozick's ‘utility monster' is often regarded as impossible, because one life cannot be better than a large number of other lives. Against that view, I propose a purely marginalist account of utility monster defining the monster by a higher sensitivity of well-being to resources (instead of a larger total well-being), and I introduce the concept of collective utility monster to account for resource predation by a group. Since longevity strengthens the sensitivity of well-being to resources, large groups of long-lived persons may, if their longevity advantage is sufficiently strong, fall under the concept of collective utility monster, against moral intuition. |
| Keywords: | Longevity, mortality, inequalities, utilitarianism, Nozick’s utility monster |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04834045 |