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on Economics of Ageing |
| By: | Linden, Mikael; Väänänen, Niko |
| Abstract: | Tutkimuksen tavoitteena on arvioida, nostiko vuoden 2005 eläkejärjestelmän ns. superkarttumasääntö eläköitymisikää 63 ikävuoden jälkeen. Tarkastelun kohteena on vuoden 1947 syntymäkohortin siirtyminen vuosina 2007-2015 vanhuuseläkkeelle. Superkarttuma mahdollisti paremman eläketason työntekoa jatkamalla ikävuoden 63 jälkeen. Tavoitteena oli, että eläkeikä nousisi. Tällöin talousteorian mukainen tulos, että korkea työtulo- ja eläketaso johtavat eläkeiän laskuun, ei välttämättä toteudu. Muuttujakolmikon {tulot, eläke, eläkeikä} rakenteellista riippuvuutta tutkitaan aluksi systeemimallin estimoinnin kautta. Saatuja tuloksia tarkennetaan tämän jälkeen IV-estimoinnilla eläkeiän kohdalta. Lopuksi tarkastellaan eläkeikämallin tuloksia uuden KLS-estimaattorin yhteydessä, joka huomioi tulo- ja eläkemuuttujien endogeenisuuden suoraan OLS-estimoinnin yhteydessä. Saavutetut tulokset tukevat päätelmää, että superkarttumasääntö johti eläkeiän nousuun keskimäärin n. 1.3 vuotta negatiivisesta tulovaikutuksesta huolimatta. Tulos antaa lisävalaistusta yksilötason eläkeiän määräytymisestä. Tästä voi olla hyötyä eläkejärjestelmän edelleen kehittämisen yhteydessä. |
| Keywords: | Incomes, pensions, accrual rate, retirement age |
| JEL: | J22 J26 J32 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123064 |
| By: | - |
| Abstract: | The Caribbean is undergoing a demographic transition with declining birth rates and increasing life expectancy. From 2000 to 2020, the population grew from 39 million to 44 million, with an annual growth rate of 0.64%, lower than the Latin American and Caribbean average of 1.29%. Life expectancy rose from 67.4 to 70.8 years for males and 72.6 to 76.2 years for females, and under-5 mortality decreased from 47 to 35 per 10, 000 births. The ageing population, driven by these dynamics and the substantial emigration of the working-age population, saw the median age rise from 24 to 31 years and is projected to reach 33 years by 2050, with those over 50 comprising a quarter of the population (UN-DESA, 2022). This demographic transition towards an ageing population mirrors more of what is expected of advanced economies rather than the developing countries of the Caribbean. An ageing population produces many ramifications for economic development as it negatively affects labour productivity and strains pension systems. Managing the demographic transition necessitates policies that help promote the economic growth needed to sustain pension, healthcare, and elderly care systems. Policies harnessing the benefits of international migration constitute a critical pillar of the population policies available to Caribbean governments to manage the demographic transition and assure sustainable development. |
| Date: | 2024–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col095:80687 |
| By: | Guimbeau, Amanda (University of Sherbrooke); Menon, Nidhiya (Brandeis University) |
| Abstract: | We leverage the expansion of the National Social Assistance Program (NSAP) in India in 2006 to estimate the impact of access to public pensions on three measures of depression for the elderly in below poverty line households, using a regression discontinuity design based on age-eligibility cutoffs. We focus on India given that it is the largest lower-middle-income country in terms of population, has limited welfare safety nets, and relatively large proportions of disadvantaged people with mental health vulnerabilities. We find that becoming eligible for public pensions reduces the likelihood that the elderly poor are depressed. In particular, the intent-to-treat estimate is a 10.1 percentage point decline in the broadest measure of depression. Our gender-specific analyses reveal heterogeneous impacts across demographic groups. More specifically, widowed populations, the majority of whom are elderly poor women, gain the most. Our investigation into the underlying mechanisms reveals that pension eligibility improves mental health through decreased labor market participation, increased healthcare utilization, improved lifestyle choices, enhanced life satisfaction and greater control over resources. Our results offer insights for shaping effective social assistance policies aimed at raising the welfare of the most at-risk populations in resource-constrained contexts. |
| Keywords: | pension eligibility, depression, mental health, elderly populations, gender, poor, widowed, India |
| JEL: | H55 I12 I18 I38 J14 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17530 |
| By: | Arynbaev, Janybai; Sydykova, Umut; Normatov, Melisbek; Arzybaev, Askarbek; Arzybaev, Atabek |
| Abstract: | Abstract: This article reflects on the central issues of the pension system in the Kyrgyz Republic and the prerequisites for its modernization. Due to its scale, it seems impossible to reflect all aspects of activities in one study. At a time of political and financial turbulence in the world, the factors of specific socio-economic conditions, the need for a pension system sustainability, and financially sound principles of pension benefits provision become vitally actual. Due to its social significance, the issue of modernizing the pension system is widely discussed. All this makes it necessary to develop a social insurance members’ centred approach to reforming the pension system, which affects the interests of citizens, employers and the state. The current research applies to the national pension system big data research using the ILO/PENSIONS platform in 2022-2023. The research created a strong potential for the platform to become one of the most effective actuarial tools globally. |
| Keywords: | Keywords: Pension fund, social fund, social insurance, pension provision, material support, guarantee, solidarity system, accumulation system, income, length of service, differentiation. |
| JEL: | H55 I38 |
| Date: | 2024–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122785 |
| By: | Ehrlich , Isaac (State University of New York at Buffalo); Liu, Zhiqiang (State University of New York at Buffalo) |
| Abstract: | Our paper examines the financial preparedness of near-retirement individuals across five countries: the United States, Japan, and the Republic of Korea (developed economies) and the People’s Republic of China and India (developing economies). It focuses on four channels of retirement support: intra-family transfers, self-managed assets, private pensions, and public pensions, with an emphasis on self-dependency and willingness to hold risky assets. We develop two measures of preparedness—wealth-based and consumption-based—which assess the resources available to individuals near retirement. We find that, while wealth-based and, generally, consumption-based preparedness tends to be significantly higher in the more developed countries, self-dependency measures are higher in the developing countries, particularly in rural areas, where public pensions play a smaller role. Our regression analysis reveals that education, health, and prior wealth are key factors influencing individual preparedness through investments in risky assets. The paper concludes with policy recommendations for enhancing retirement preparedness in both developed and developing economies. |
| Keywords: | later-life financial preparedness; public pensions; human capital; self-dependency; asset management |
| JEL: | H55 J14 J32 |
| Date: | 2025–01–17 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0763 |
| By: | Pashchenko, Svetlana; Jang, Youngsoo; Porapakkarm, Ponpoje |
| Abstract: | Should public policies address inequality due to heterogeneous life expectancy? Intuitively, taking short life as a disadvantage, such policies should favor those with high mortality. Yet, pension systems implicitly redistribute from low-life-expectancy to high-life-expectancy people. Moreover, this direction of redistribution is optimal from the perspective of the standard utilitarian welfare criterion. We study mortality-related redistribution in a more flexible setting. We start by establishing a formal framework for the analysis by clearly distinguishing between the redistribution along mortality and income dimensions, and thus between mortality and income progressivity. We then show that it is optimal to redistribute towards high-mortality people in two cases. First, when welfare criterion features aversion to lifetime inequality which exceeds aversion to consumption inequality. Second, when income and mortality are negatively correlated, and income redistribution tools are limited. |
| Keywords: | Mortality-related redistribution, Welfare criteria, Pensions, Prioritarianism |
| JEL: | D30 D60 D63 |
| Date: | 2024–10–24 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122662 |
| By: | Charlotte Bartels; Eva Sierminska; Carsten Schröder |
| Abstract: | There is growing interest in understanding how gender influences the accumulation of wealth. While prior studies focused on labor-related determinants, our research focuses on inheritances and gifts. Using unique survey data that oversamples the top 1% of wealth holders in Germany, we show that the gender wealth gap is small for individuals up to age 40, then widens, and declines for those past retirement age. Transfer amounts and their timing are important drivers of these differences: men tend to inherit larger sums than women during their working life. Women often outlive their male partners, thus receiving larger inheritances at older ages. |
| Keywords: | wealth accumulation, wealth inequality, gender wealth gap, inheritances, gender economics |
| JEL: | D31 D63 J16 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1212 |
| By: | Sadettin Haluk Citci (Department of Economics, University of Zurich); Halit Yanikkaya (Gebze Technical University) |
| Abstract: | Using a large administrative dataset containing information for over 39 million private pension contracts and quasi-experimental research design provided by matching contribution policy reform in Turkey, we investigate the effectiveness of nationwide matching contributions in promoting saving outcomes and explore differences in responses to the program among participants. By leveraging two distinct policy changes, we estimate the marginal and net effects of matching contributions on participants’ saving decisions separately. Our differences-in-differences estimations reveal that the matching contribution policy increases contributions paid by 6 percent. Additionally, we analyze the impact of a sharp increase of 30 percent in the match threshold on participants’ contributions paid. Our results suggest that the nationwide matching contribution policy wields a notable yet relatively modest impact on augmenting saving contributions. Notably, we discern substantial variations in the responses to the program among different participant groups. |
| Date: | 2024–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1712 |
| By: | Hiilamo, Aapo |
| Abstract: | While debts are widely used financial tools, few longitudinal studies investigating potential causal links between debts and mental wellbeing exist among older adults. Older adults, particularly those not employed, are less likely to have increasing incomes to help them pay off their debts. This study investigates whether older adults with non-mortgage debts in three different labour market states have lower mental wellbeing and, separately, whether it is likely that reducing their debts helps to improve mental wellbeing. Using the English Longitudinal Study of Ageing, the study focuses on the English context, which is particularly interesting due to the high levels of, and a unique policy approach to, private indebtedness. The results indicate that people with debts have lower mental wellbeing (more depressive symptoms and lower quality of life) in all categories, but the mental pain linked to debts is stronger for people who are jobless (not working, not retired). The analysis from a causal perspective suggests that getting rid of debts may reduce depressive symptoms among people who are jobless but may also improve quality of life among the retired and employed. Both these findings suggest that mental health services should work closely with debt advice when needed. |
| Keywords: | mental health; household debt; debt help; older adults; employment |
| JEL: | N0 |
| Date: | 2024–10–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:117557 |
| By: | Herr, Annika; Lückemann, Maximilian; Reichert, Arndt |
| Abstract: | This study examines the implications of the rising person-centered care model on the long-term care market, specifically focusing on the promotion of higher single-room occupancy in nursing homes. We exploit the staggered implementation of a state-level policy that requires nursing homes to meet single-room quotas, forcing many long-term care providers to convert multiresident rooms into single-occupancy rooms. Our difference-in-differences analyses are based on data from the German Care Statistics covering the period between 2007 and 2019. These data offer detailed insights into the universe of individuals needing care, their specific care arrangements, and all nursing home facilities in the country. Our results indicate that the policy significantly decreases the likelihood of individuals in severe need of care securing a bed in a nursing home. The likelihood of individuals receiving professional home health care remains unchanged by the policy. We observe, however, a notable increase in the proportion of people in severe need of care in informal home care. The policy generates substantial direct net fiscal gains for long-term care insurance and local communities. These likely exceed potential indirect fiscal costs that may arise, for instance, due to reduced income tax revenues for federal and national governments resulting from lower labor supply among informal caregivers. |
| Keywords: | single-room policy, nursing home access, home health care, informal care, difference-in-differences, never treated |
| JEL: | H50 I11 I13 I18 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:han:dpaper:dp-734 |
| By: | D'hert, Liam (Ghent University); Lippens, Louis (Ghent University); Baert, Stijn (Ghent University) |
| Abstract: | Sustaining social security systems amidst an ageing population requires (re)integrating the unemployed and inactive into work. However, stigma surrounding non-employment history can create barriers to finding a job. Whilst unemployment stigma is well-documented, inactivity stigma remains under the radar. To address whether, why, and when inactivity hinders hiring, we employed a vignette experiment where real-life recruiters rated fictitious applicants with varying non-employment breaks on hireability and productivity. Results reveal employers rank candidates by their reason for being out of work: those with training breaks rank highest, followed by former caregivers, the previously ill and the unemployed, and last, the discouraged. Productivity perceptions match this pattern. Trainees score highest for skills, motivation, cognition, discipline, reliability, flexibility, and trainability. Caregivers excel in perceived social skills but fall short on flexibility. The previously ill are seen as more motivated than the unemployed but likely raise health concerns. The discouraged trigger the harshest stigma, particularly for motivation and self-discipline. Longer lapses hurt hiring chances, but not for training breaks. |
| Keywords: | career break, unemployment, inactivity, hiring chances, factorial survey experiment |
| JEL: | C91 E24 J21 J64 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17497 |
| By: | - |
| Abstract: | This 2024 edition of the Demographic Observatory presents the main demographic indicators for Latin America and the Caribbean according to the 2024 revision of population estimates and projections of the United Nations, comparing them with the 2000 revision to highlight the main demographic changes in the region since the turn of the twenty-first century. Analysis of the two revisions shows that birth and death rates declined more rapidly than anticipated in 2000, except during the pandemic, when the death rate climbed sharply, and that net migration was lower than expected. The change in the age structure of the population owing to the rapid demographic transition, as well as the persistent decline in fertility to below the replacement level, compound challenges in the region, where socioeconomic inequality is high and there are significant gaps in access to government goods and services. Ageing affects all areas of public policy, leading in particular to rising demand for long-term care services. There is no question that the demographic landscape is and will remain highly consequential in building more productive, inclusive and sustainable societies in Latin America and the Caribbean. |
| Date: | 2024–12–12 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col044:81085 |
| By: | Liu, Xueying (Capital University of Economics and Business, Beijing); Zhao, Zhong (Renmin University of China) |
| Abstract: | This study investigates the impact of social pension insurance on the efficiency of household financial portfolios, utilizing data from the 2019 wave of the China Household Finance Survey. Our findings indicate that social pension insurance significantly enhances the efficiency of household financial portfolios, partly through the channels of risk attitude and precautionary savings. |
| Keywords: | social pension insurance, household portfolios, sharpe ratio, efficiency |
| JEL: | G59 J24 I28 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17492 |
| By: | Costa-Font, Joan (London School of Economics); Vilaplana-Prieto, Cristina (Universidad de Murcia) |
| Abstract: | The hidden value of adult informal care (IC) refers to the unaccounted value of informal care in overall costs of long-term care (LTC) estimates. This paper estimates the net value of adult IC in Europe, drawing on a well-being-based methodology. We use an instrumental variable strategy and a longitudinal and cross-country dataset to estimate the causal effect of the extensive and intensive margin of caregiving on subjective well-being. Finally, we estimate the so-called compensating surplus (CS), namely the income equivalent transfer, to compensate for the net disutility of caregiving. IC reduces average subjective well-being by about 1% compared to the mean (6% among co-residential caregivers). Relative to a country's Gross Domestic Product (GDP), the value of informal care ranges between 4.2% in France and 0.85% in Germany. Such relative value is inversely correlated with the country's share of formal LTC spending, leading to reconsidering LTC regimes. The average CS per hour for IC is 9.55€, with a range from 22€ per hour in Switzerland to 5€ per hour in Spain. Additionally, long-term CS tends to be lower than short-term CS. |
| Keywords: | caregiving, the value of time, wellbeing methods, Informal care, life satisfaction, daughters |
| JEL: | I18 J17 J18 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17490 |