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on Economics of Ageing |
| By: | Grant Miller; Nieves Valdés; Marcos Vera-Hernández |
| Abstract: | An important but poorly understood way that economic development may influence health is through the private incentives that it creates for individuals to invest in their own health. In this paper, we study how individuals' forward-looking health investments respond to changes in expected future (but not current) wealth. Focusing on institutional features of Chile's public pension overhaul in 1981, we link administrative microdata to a detailed household panel survey, and we then exploit discrete breaks in the resulting cohort pension wealth profile using a fuzzy regression kink design (RKD). Although theoretically ambiguous, empirically we find that greater expected pension wealth increases the use of important preventive medical care (and to a lesser extent, promotes more costly healthy lifestyle behaviors) – leading to measurable increases in chronic disease diagnosis (a requisite for appropriate disease management), reductions in disease prevalence, and measurably lower mortality in old age (particularly due to chronic diseases). In general, these results provide new evidence that economic development can have a meaningful incentive effect on health. |
| JEL: | H55 I12 I15 I18 J18 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34249 |
| By: | Da, Linlin; Jin, Zhezheng; Xu, Qianhui; Renzi-Hammond, Lisa M.; Chen, Zhuo; Khan, M. Mahmud; Rajbhandari-Thapa, Janani; Chen, Xi; Wu, Bei; Song, Suhang |
| Abstract: | This study examines how SNAP participation may affect age-related cognitive decline among cognitively intact older adults over 10 years. Leveraging a longitudinal survey of SNAP-eligible participants in the Health and Retirement Study (HRS) collected biennially from 2010 to 2020, we estimate the relationship between SNAP participation and cognitive decline across different population groups. We show that SNAP participation is associated with a slower cognitive decline in global cognition, memory, and executive function. A significant three-way interaction among SNAP participation, race/ethnicity, and time indicates faster decline in global cognition among Non- Hispanic Black and Hispanic SNAP users. Our findings suggest that SNAP participation may help slow age-related cognitive decline. However, the benefits of SNAP vary across different population groups. Policies promoting equitable access to SNAP benefits have significant potential to improve cognitive health across diverse populations. |
| Keywords: | Supplemental Nutrition Assistance Program (SNAP), cognitive decline, longitudinal study, disparity |
| JEL: | H53 I38 J14 I18 H75 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1671 |
| By: | Belzer, Jana (Institute for Employment Research (IAB), Nuremberg, Germany); Lietzmann, Torsten (Institute for Employment Research (IAB), Nuremberg, Germany); Prümer, Stephanie (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "In Germany, people fit work who are unemployed or have little income can receive basic income support for jobseekers in accordance with SGB II in order to secure their livelihood. In principle, this also applies to older benefit recipients up to the standard retirement age. However, until 2022, those entitled to benefits from the age of 63 were obliged to switch from basic income support to a pension if they had the necessary insurance years for early retirement. With the Citizens' Benefit, which came into force on January 1, 2023, this regulation set out in §12a SGB II was suspended until December 31, 2026. One of the aims of the reform is to keep older people entitled to benefits in the labor market. To be able to assess the employment potential of older benefit recipients targeted by the temporary suspension of §12a SGB II, it is necessary to characterize them. This research report therefore looks at older benefit recipients aged 55 and older in SGB II using various data sources. Information is provided on the number of people in and out of benefit receipt and their attachment to the labor market as well as the specific circumstances and problems of older benefit recipients are presented. The number of older people entitled to benefits under SGB II rose significantly between 2007 and 2023, both in absolute terms and in relation to the total number of people entitled to benefits. This increase is mainly attributable to Western Germany, while the number of older beneficiaries in Eastern Germany has fallen over time. The increase in the number of older beneficiaries is not driven by gender or nationality. Within the group of older beneficiaries, the age structure has shifted. An increasing number of people are older than 60. In particular, the number of beneficiaries over the age of 63 has risen almost continuously and has tripled over time. The labor market attachment of older benefit recipients has increased in recent years. On the one hand, the proportion of those registered as unemployed, i.e. those who are available for integration into the labor market, has risen from around 35 percent in 2010 to around 45 percent in 2023. If older beneficiaries are not registered as unemployed, this is often due to incapacity to work or special regulations for older people in SGB II. In addition to unemployment, the employment of older benefit recipients has also increased over time, so that in 2023 almost one in five benefit recipients over 55 was in employment. Marginal employment in particular plays a role here. In summary, both the rising number of older people registered as unemployed and the widespread marginal employment among older benefit recipients indicate that there is employment potential among older benefit recipients, at least in this respect, which could be leveraged by the temporary suspension of §12a SGB II. In addition to the number of older people entitled to benefits, this research report also sheds light on the behavior of those leaving benefit receipt and their integration into employment. The exit rates of beneficiaries over the age of 55 are significantly lower than those of younger age groups. Significant departures from benefit receipt can only be identified for beneficiaries who have reached the age of 63, whereby these are likely transitions to retirement. Departures from benefit receipt by older people also vary considerably over time in line with changes in access to pensions, i.e. departures are observed particularly at certain age limits at which pension access is possible. The integration rate into employment of beneficiaries over 55 is very low. Especially at the age of 60 or older, employment integration is almost non-existent and there is no positive trend to be seen here. This casts doubt on the objective of the temporary suspension of Section 12a SGB II to limit the forced withdrawal of older beneficiaries from the labor market, at least with regard to actual integration into employment. An examination of the individual employment and benefit receipt biographies provides further information on the labor market attachment of older benefit recipients and shows that a large proportion of over 75 percent have been receiving benefits for a very long time. A small proportion of these people are also in employment - mostly in marginal employment - but the majority have a very low level of employment participation. In addition, the biographies of 20 percent of older benefit recipients are characterized by shorter benefit receipt and slightly higher employment participation. There is therefore a certain heterogeneity within the group of older benefit recipients in terms of labor market status and benefit receipt. In addition, the biographies in the event of termination of benefit receipt are characterized by the access options to pensions: leaving benefit receipt often takes place at the age limits of 63 years and from 65 years. Although it is not possible to tell directly from administrative data whether people leave benefit receipt and claim pensions, it can be assumed that they do if they leave benefit receipt at these ages. On the basis of survey data, more concrete statements can be made about the situation of people who received benefits at the age of 62 at the age of 64: A large proportion remain in receipt of benefits under SGB II, while around 6 percent receive benefits under SGB XII. Around a quarter of benefit recipients no longer receive benefits. Of these, the majority receive pensions. By contrast, taking up more than marginal employment hardly plays a role in leaving benefit receipt. However, it remains fundamentally unclear whether any access to pensions is voluntary or follows the application of Section 12a SGB II. Comparing older people in receipt of benefits with people not in receipt of benefits in the same age group with the help of survey data, the circumstances and problems of the group of older recipients of basic benefits can be illustrated. In line with the literature, benefit recipients often have lower educational qualifications, live alone more often, are more likely to have a migration background and report poorer health. The findings of the research report cast doubt on whether the temporary suspension of §12a SGB II will achieve its goal of keeping older people entitled to benefits in the labor market and increasing their employment potential. The employment potential appears limited and accompanying measures such as stronger counselling and placement activities are therefore necessary. Support for beneficiaries aged between 55 and 60 is likely to be particularly effective." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation |
| Date: | 2025–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabfob:202519 |
| By: | Gaheyon Cheon (Korea Institute for Industrial Economics and Trade); Sora Lee (Korea Institute for Industrial Economics and Trade) |
| Abstract: | Historically, older workers were often regarded as valuable assets in traditional industrial settings due to their skills and experience. But the industrial environment is now characterized by the rapid adoption of advanced digital technologies. Older workers tend to adopt new technologies at a slower rate compared to younger generations; for firms striving to maximize productivity and competitiveness, this drawback makes the employment of older workers less attractive than in the past. <p> Given the above, it is worth examining the characteristics of an aging workforce in relation to the digital transformation to produce insights that can inform industrial and workforce policy. For this study, we focus on assessing the impact of workforce aging on firms’ adoption of digital technologies. Specifically, we aim to quantitatively evaluate how the proportion of older employees within different industries affects the adoption and utilization of digital transformation technologies. Through this analysis, we seek to better understand the interaction between workforce composition and digital innovation, and ultimately offer policy insights to support a more inclusive and effective digital transition. |
| Keywords: | digital transformation; DX; population aging; demographic change; workforce aging; workforce structure; age distribution; aging; population structure; population decline; working-age population; Korea |
| JEL: | M54 M51 M53 E24 J11 J24 |
| Date: | 2025–08–31 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieter:021549 |
| By: | van Ewijk, Casper (Tilburg University, Center For Economic Research); Meijdam, Lex (Tilburg University, Center For Economic Research) |
| Keywords: | pension; payg; NDC; intergenerational risk sharing |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiucen:4c768d0a-7f76-4fd1-88e1-56656843198c |
| By: | Anwesha Banerjee; Andrea Erhart; Claire Rimbaud |
| Abstract: | This study examines the pro-environmental attitudes and behaviors of individuals across different age groups. We compare young adults with older adults in an online experiment with German participants. We use an incentivized task - the Work for Environment Protection task (WEPT) - to measure environmental behavior. We find that compared to younger adults, older adults are more concerned and less skeptical about climate change. Older adults also exhibit significantly more pro-environmental behavior, reflected in higher participation in tasks associated with donations to an environmental organization. These results highlight the need to develop strategies to improve support for environmental policies specifically targeted to different age groups. |
| Keywords: | environmental behavior, environmental attitude, climate change, knowledge, age |
| JEL: | Q50 C91 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:inn:wpaper:2025-05 |
| By: | Kohei Asao; Haruki Seitani; Ara Stepanyan; Ms. TengTeng Xu |
| Abstract: | This paper explores the complex roles of demographic changes and technological innovation in shaping Japan's labor market. We use regression analysis to assess the impact of population aging on labor productivity and shortages. Our findings indicate that the aging workforce contributes to labor shortages and potentially weighs on labor productivity. We also investigate occupational level data to identify the complementarity and substitutability of AI in occupational tasks as well as skill transferability. Our research reveals that Japanese workers face lower exposure to AI compared to their counterparts in other advanced economies, thereby constraining AI's potential to mitigate labor shortages. Furthermore, the disparities in skill requirements across occupations with different AI exposures highlight the importance of facilitating labor mobility from displaced jobs to those in demand. |
| Keywords: | Population aging; labor market; artificial intelligence; skill transferability |
| Date: | 2025–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/184 |
| By: | Albanese, Andrea (Luxembourg Institute of Socio-Economic Research (LISER)); Deschenes, Olivier (Department of Economics, University of California, Santa Barbara); Gathmann, Christina (Luxembourg Institute of Socio-Economic Research (LISER)); Nieto, Adrian (Department of Economics, Lund University) |
| Abstract: | This paper provides novel evidence of the impact of temperature fluctuations on retirement behavior and underlying mechanisms, combining 30 years of rich longitudinal survey data with granular daily weather information. Exposure to cold and hot temperatures accelerates transitions into retirement, particularly among individuals unaccustomed to such conditions, and the effects are strongest among vulnerable populations facing greater health challenges and limited access to healthcare. Extreme temperatures deteriorate health through a higher incidence of cardiovascular diseases and strokes, reducing individuals' ability to work, while better access to healthcare mitigates the adverse effects of extreme temperatures on retirement behavior. |
| Keywords: | Temperature; Health; Retirement; Healthcare; |
| JEL: | I14 I18 J26 Q54 |
| Date: | 2025–09–25 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lunewp:2025_008 |
| By: | Bensnes, Simon (Statistics Norway); Hernaes, Øystein (Ragnar Frisch Centre for Economic Research); King, Max-Emil M. (Ragnar Frisch Centre for Economic Research) |
| Abstract: | This study examines the impact of receiving one additional week of paid vacation on labor market attachment among Norwegian workers aged 60+. Employing a triple-differences estimation strategy, we exploit age-based eligibility thresholds before and after a 2009 reform to identify causal effects. Our findings indicate that the extra leave has negligible effects on both employment, sickness absence and disability benefit receipt in the year workers first receive it. If anything, some workers use the additional vacation time to increase earnings from secondary employers. The results imply that policymakers should consider alternative measures to mandated leave to support an aging workforce. |
| Keywords: | triple-differences, labor supply, older workers, paid vacation, public policy |
| JEL: | H8 I12 J22 J26 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18121 |
| By: | Momotazur Rahman; Brian McGarry; Elizabeth M. White; David C. Grabowski; Cyrus M. Kosar |
| Abstract: | Nursing homes face unique financial incentives that encourage under-investment in onsite clinical capabilities and overreliance on hospitals to triage and care for residents with dementia, contributing to high levels of health care spending for this population. A proposed solution to align incentives are Institutional Special Needs Plans (I-SNPs), which combine capitated financing with plan-provided onsite clinician presence. Using 12 million resident-quarters of data from 2016-2022, we exploit the timing of nursing homes’ I-SNP contracting to instrument for plan enrollment and estimate causal effects on hospitalization and other health outcomes. We found that I-SNP enrollment reduced quarterly hospitalization rates by 3 to 4 percentage points, which equates to one third of hospitalizations relative to the sample mean. We do not find consistent evidence of an impact on other health outcomes and quality of care indicators. |
| JEL: | I10 I13 I18 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34235 |
| By: | Menta, Giorgia (LISER); Biroli, Pietro (University of Bologna); Mehta, Divya (Queensland University of Technology); D'Ambrosio, Conchita (University of Luxembourg); Cobb-Clark, Deborah A. (University of Sydney) |
| Abstract: | Epigenetics is the study of how people’s behavior and environments influence the way their genes are expressed, even though their DNA sequence is itself unchanged. By aggregating age-related epigenetic markers, epigenetic ‘clocks’ have become the leading tool for studying biological aging. We make an important contribution by developing a novel, integrated measure of epigenetic aging – the Multi EpiGenetic Age (MEGA) clock – which combines several existing epigenetic clocks to reduce measurement error and improve estimation efficiency. We use the MEGA clock in three empirical contexts to show that: i) accelerated epigenetic aging in adolescence is associated with worse educational, mental-health, and labor market outcomes in early adulthood; ii) exposure to child maltreatment before adolescence is associated with half a year higher epigenetic aging; and iii) that entering school one year later accelerates epigenetic aging by age seven, particularly among disadvantaged children. The MEGA clock is robust to alternative methods for constructing it, providing a flexible and interpretable approach for incorporating epigenetic data into a wide variety of settings. |
| Keywords: | child abuse, DNA methylation, epigenetic clocks, human capital, ALSPAC data |
| JEL: | I12 I14 J24 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18114 |
| By: | Ai, Jingyi (Fundan University); Chen, Xi (Yale University); Feng, Jin (Fudan University, China); Xie, Yufei (San Diego State University) |
| Abstract: | The study examines the early effects of cognitive-impairment (CI) friendly communities on health care utilization among older adults in Shanghai, China. By exploiting the rollout of CI-friendly communities and employing a difference-in-differences approach, we evaluate the impact of CI-friendly communities. We find that CI-friendly communities significantly increase the probability and frequency of visiting cognition-disease-related departments (CRD) by 0.7 (13.73%) percentage points and 0.02 (17.24%) times, respectively. In particular, the effect is more pronounced for individuals not previously received CRD care. The dominant mechanisms may include information and early screening effects. Additionally, CI-friendly communities affect health care utilization in other positive ways, such as reducing emergency room (ER) visits and promoting primary care use. |
| Keywords: | awareness of cognitive impairment, health care utilization, CI-friendly community |
| JEL: | I18 J14 I11 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18118 |
| By: | Rotondi, Valentina (University of Applied Sciences and Arts of Italian Switzerland) |
| Abstract: | Care is foundational to human development and economic resilience, yet remains largely invisible in economic theory and policy. This paper presents a formal model in which support for redistributive care policies depends on three belief channels: the perceived publicness of care, its productivity, and its prosocial value. The model shows that public coordination reduces variance in received care, increasing the likelihood that vulnerability becomes productive. Empirically, we combine two approaches. First, we analyze World Values Survey data from 25 countries (2017–2022), linking individual attitudes to a novel folktale-based index that captures the cultural salience of care-related virtues versus harm-related vices. Countries scoring higher on this index show greater support for redistributive care; civic participation also plays an independent role. Second, an incentivized framing experiment in Italy reveals that framing care as a private responsibility reduces donations to a pooled care fund by 6–8 percentage points. Together, these findings suggest that institutions and shared narratives jointly shape attitudes toward care. Recognizing care as social infrastructure—and designing time regimes and services that foster trust—may be key to building resilient and inclusive economies. |
| Date: | 2025–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:p579d_v1 |