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on Economics of Ageing |
| By: | Nishimura, Y. (University of Osaka); Pestieau, Pierre (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | As income rises, the risk of disability in old age declines, while life expectancy increases. These correlations strengthen the case for public long-term care (LTC) insurance over public pension systems. However, this perspective shifts when considering family solidarity—specifically, the informal care provided by spouses and children to elderly relatives. When viewed through the lens of altruistic caregiving motives, the argument for social LTC insurance becomes more nuanced. The interplay between formal and informal care is a key factor in shaping optimal policy. In this paper, we demonstrate that when family members reliably provide informal care, the design of a comprehensive public LTC system depends on the existence of a private insurance and on the degree of substitutability between informal and formal care. |
| Keywords: | Long-term care ; mortality risk ; disability risk ; informal care |
| JEL: | H2 H5 |
| Date: | 2025–06–09 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025012 |
| By: | Perelman, Sergio (Université de Liège); Pestieau, Pierre (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | The relationship between informal and formal care for disabled elderly individuals -whether they function as substitutes or complements- represents a fundamental question for optimizing public resource allocation in aging societies. We develop a theoretical framework demonstrating that long-term care (LTC) policy design hinges critically on this relationship. Using data from the Survey of Health, Ageing and Retirement in Europe (SHARE), we provide empirical evidence to address this pivotal question. |
| Keywords: | Long term care ; informal versus formal care ; social insurance |
| JEL: | H I |
| Date: | 2025–06–14 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025016 |
| By: | Claudia Curi (Free University of Bozen-Bolzano, Italy); Andreas Dibiasi (Free University of Bozen-Bolzano, Italy); Matteo Ploner (University of Trento, Italy); Mirco Tonin (Free University of Bozen-Bolzano, Italy) |
| Abstract: | We study whether gender-biased financial advice contributes to the gender gap in pension wealth. Using administrative records from four private pension funds in Italy, we document that women are ceteris paribus 8 percentage points less likely than men to choose stock-focused investment lines at the time of enrollment. To assess whether advisory behavior contributes to this gap, we conduct a vignette-based survey experiment among pension advisors affiliated to the four funds, randomly varying the gender of otherwise identical prospective 25-year-old clients. Advisors are 22 percentage points less likely to recommend stock-oriented portfolios to female clients, even after conditioning on advisors’ beliefs about relevant client characteristics. We further show that a simple information intervention that makes advisors aware of the documented gender bias eliminates this gap in the experimental setting. Linking advisors to real clients in the administrative data, we demonstrate that the gender gap in actual investment choices shrinks by ap proximately 60% during the five months following the intervention. This evidence suggests that gender bias in financial advice is largely implicit and that low-cost informational feedback to advisors can meaningfully reduce gender disparities in retirement wealth accumulation. |
| Keywords: | Biased advice; Gender; Pension; Implicit bias. |
| JEL: | J16 G53 J32 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bzn:wpaper:bemps118 |
| By: | He; Z.; |
| Abstract: | Using a non-parametric fuzzy regression discontinuity design and leveraging data from the China Health and Retirement Longitudinal Study (CHARLS), this paper explores the role of the urban-rural split in China’s pension system in shaping healthcare utilization and health outcomes. Our estimates show that receipt of public pensions, particularly the Urban Employee Basic Pension Scheme (UEBPS), significantly improves self-reported health, mental health (CES-D scores), and physical health (ADL scales), especially among urban married males. However, there are no significant effects on healthcare utilization among urban residents. Moreover, social pensions, the New Rural Pension Scheme (NRPS), increase healthcare utilization(inpatient/outpatient)and corresponding healthcare spending of the rural population, particularly among married male residents. Additionally, these findings exhibit heterogeneity across gender, rural-urban differences, hukou status, and marital status. Furthermore, the health effects stemming from urban pension schemes can be explained by retirement, providing more leisure time for males and grandparental childcare responsibilities for females. However, the positive effect on healthcare use of rural males and the null effect for rural females are driven by the pure income effect of household joint financial pooling under the NRPS and female altruism. Finally, we find that integrating NRPS and URPS increased migration, non-agricultural employment, and health of non-pensioners, with no effect on rural pensioners. |
| Keywords: | pension schemes; non-parametric fuzzy regression discontinuity; health service utilization; urban-rural split; |
| JEL: | I0 I1 J0 J1 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:yor:hectdg:26/03 |
| By: | Pestieau, Pierre (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | As the demand for old age long-term care (LTC) continues to grow, it becomes crucial to evaluate the roles of its traditional providers: the state, the market, and the family. Initially, this book focuses on recent research concerning the contributions of families and the marketplace. Subsequently, recognizing the diminishing involvement of families and the limited role of market solutions in addressing LTC needs, it turns its attention to a series of studies that investigate the formulation of public policies aimed at supporting elderly individuals who are without family support and lack sufficient resources. These policies are designed to leverage both market mechanisms and family resources to create a comprehensive support system for the dependent elderly. Additionally, this book explores how different countries, particularly in Europe and North America, address disability and dependence within their LTC systems, revealing a diverse range of strategies and solutions. This comparative analysis helps identify effective practices and areas needing further attention in the structuring of social insurance and support systems. Through this exploration, we aim to foster a deeper understanding of how social norms and family solidarity influence LTC provision and how these elements can be integrated into more robust public policy frameworks. |
| Keywords: | Long-term care ; dependence ; social insurance ; family solidarity ; social norms |
| JEL: | I11 I12 I18 J14 |
| Date: | 2025–08–30 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2026001 |
| By: | Hindriks, Jean; Mauroy, Théo |
| Abstract: | Population ageing is one of the most significant demographic transformations of our time, with far-reaching consequences for public finances. In this paper we study the impact of ageing on the budget of education in the French-speaking community of Belgium. As the proportion of older teachers increases, the government faces mounting wage cost due to the seniority premium (the wage drift). Simultaneously, natality decline shrinks the school-age population, which reduces the budget dedicated to education (the revenue drift). These dual pressures—rising expenditures and potentially declining revenues—pose a strategic challenge for budget deficit. Without proactive reform, the French speaking community risk facing unsustainable debt trajectories. Our main contribution is to use administrative data over the period 2012-2024, to estimate the Noria effect which is the impact on the total wage bill of the continuous turnover of high-paid outgoing and low-paid incoming teachers. We also study the job replacement rate to measure the impact of the turnover on the pupil-teacher ratio. Understanding the Noria effect and the job replacement effect in the past helps in budgeting for future payroll in the context of rapidly ageing workforce. We further discuss how best to address the budget crisis without sacrificing teaching quality. |
| Keywords: | Aging ; baby bust ; education ; debt ; Noria effect |
| JEL: | I22 H52 J11 J13 |
| Date: | 2025–09–29 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025017 |
| By: | Palomera, David; Starke, Peter |
| Abstract: | The literature on growth dependencies increasingly calls for post-growth welfare states capable of functioning without reliance on GDP growth in order to remain within planetary limits. Yet empirical research on the relationship between welfare state arrangements and economic growth remains remarkably scarce, even in policy domains where growth dependence appears most plausible, such as pensions. Using panel data of 20 OECD countries from 1971 to 2022, we examine the relationship between public pension spending per capita and replacement rates (i.e. benefit generosity) on the one hand, and GDP per capita on the other. We find that while pension spending per capita remains partially coupled to GDP, pension replacement rates have become decoupled - and in many instances negatively coupled - already at relatively modest income levels. This is consistent with the literature on the social limits to growth, where decoupling likewise occurs at modest income levels. We find that labor-market factors - especially labor participation - are consistently and strongly associated with higher pension benefits. These findings have important policy implications, highlighting that the sustainability of pension systems in post-growth contexts may depend less on infinite economic expansion than on institutional and labor-market policy choices. |
| Keywords: | welfare state, pensions, post-growth, degrowth, sustainable welfare, growth dependence, decoupling |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:penwps:338100 |
| By: | David Crainich (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Léontine Goldzahl (IÉSEG School Of Management [Puteaux]); Florence Jusot (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique); Doriane Mignon (University of Manchester [Manchester], NTNU - Norwegian University of Science and Technology = Norges Teknisk-Naturvitenskapelige Universitet = Norjan teknis-luonnontieteellinen yliopisto) |
| Abstract: | The paper investigates the role of two demand-side determinants of long-term care insurance: correlation preference and relative preference for quality of life over wealth. We model the effect of those preferences on the joint decision to buy long-term care and long-term care insurance contract. We test the model using data from a laboratory experiment in France. While the experimental results offer only partial support for the theoretical predictions - specifically, correlation aversion does not account for over-insurance - our analysis provides evidence that correlation seeking and the relative preference for quality of life over wealth explain the limited uptake of long-term care insurance. |
| Keywords: | risk preference, Laboratory experiment, Long-term care insurance demand |
| Date: | 2025–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05536893 |
| By: | Jason Scott; John B. Shoven; Sita Slavov; John G. Watson |
| Abstract: | Target date funds – which initially invest a large share of retirement savings in stocks and shift gradually towards bonds over the life cycle – are designed to provide a “one stop shop” for retirement investing. The rationale for this pattern is that human capital, which is highest at the start of a worker’s career, is “bond-like.” Thus, utility is maximized when financial wealth is initially invested primarily in stocks, with the investment mix shifting towards bonds as the present value of future labor income declines. We revisit this logic in a dynamic model in which shocks to labor income are correlated with the stock market, and in which Social Security replaces a higher share of income for lower-income individuals. In line with empirical evidence, lower-income individuals in the model experience a higher degree of correlation between labor earnings growth and stock returns. We find that utility-maximizing retirement portfolios can vary greatly across individuals, deviating substantially from the pattern of a target date fund for lower-income individuals. |
| JEL: | G51 H55 J26 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34966 |
| By: | Zeen He (Lancaster University, Management School); Luu Duc Toan Huynh (Queen Mary University of London, School of Business and Management) |
| Abstract: | This paper leverages China’s 2006 housing reform and a non-parametric Regression Discontinuity Design (RDD) to identify the causal impact of housing wealth on health and healthcare spending across age groups. A positive housing wealth shock leads to an increase in out-of-pocket medical expenses of the elderly and children at both the extensive and intensive margins, thereby improving their health. These effects differ across age cohorts, highlighting how positive wealth shocks translate into health improvements through direct spending and private insurance uptake. In contrast, these health effects are not evident among young adults. Overall, the findings indicate that wealth shocks reduce health inequality within vulnerable households. The underlying mechanisms differ by age group: a pure wealth effect for the elderly, precautionary savings incentives for younger adults, and intergenerational investments for children. |
| Keywords: | Housing wealth; Medical expenditure; Health; China; Age differences |
| JEL: | G51 I11 I14 |
| Date: | 2026–03–09 |
| URL: | https://d.repec.org/n?u=RePEc:cgs:wpaper:124 |
| By: | Hongwei Xu; John R. Logan; Todd K. Gardner |
| Abstract: | In the United States, grandparents who live with and provide primary care to their grandchildren have emerged as a particularly vulnerable group since the 1990s. Using confidential data from the U.S. Census Bureau and Social Security Administration, this study linked individuals aged 50 years or older from the 2000 census long-form sample to their death records from 2000–2019 (weighted n = 64, 027, 000) and examined the longitudinal association between coresident grandparenting status and mortality for non-Hispanic Whites, non-Hispanic Blacks, Hispanics, and Asians. We found consistently higher rates of mortality for White coresident grandparents and lower rates for Asian coresident grandparents, regardless of the duration of primary caregiving, compared to their peers without coresident grandchildren. We also found increased risks of mortality among Hispanic long-term primary caregivers but reduced risks among Black short-term primary caregivers, compared to their peers without coresident grandchildren. |
| Keywords: | caregiver, coresident, grandparent, mortality, race, ethnicity |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:26-13 |
| By: | Davide Gritti; Dina Maskileyson; Raffaele Grotti; Stefani Scherer |
| Abstract: | Prior research documents a robust wealth–health gradient, yet comparative evidence is largely confined to older adults and offers limited insight into how wealth–related health inequality is patterned across adulthood and institutional contexts. Drawing on life–course perspectives on age–graded stratification and a healthcare–system typology, we examine how the wealth–health gradient varies across age groups in seven OECD countries. Using harmonized microdata from the Luxembourg Wealth Study (LWS), we pool 30 repeated cross–sections from Australia, Germany, Italy, Luxembourg, Spain, the United Kingdom, and the United States (2002–2022), yielding 450, 233 adults aged 25–80. Wealth is measured as gross non–financial and financial assets (ranked into within country–year quintiles), and health is measured with self–rated health. We assess wealth–health inequality by age using Wagstaff–normalized concentration indices and country–specific OLS models with wealth–by–age interactions and covariate adjustment. Across all countries and age groups, health is consistently concentrated among wealthier individuals. Inequality typically rises from ages 25–35 to a late–midlife peak (often 56–65) and attenuates at ages 66–80, with this rise–and–fall pattern most evident in the United States, Australia, and the United Kingdom. Cross–national differences broadly align with Reibling et al.’s OECD healthcare–system typology: private systems show the steepest gradients and regulation–oriented systems more compressed gradients, yet the United Kingdom is a notable outlier, and Italy and Spain show comparatively sustained gradients into older ages. Comparing wealth–health gradients across age groups reveals systematic age–graded patterns that are central to life–course perspectives on stratification. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:lis:lwswps:52 |