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on Economics of Ageing |
| By: | Maria Chaykina (Department of Economics (University of Verona)) |
| Abstract: | Notional Defined Contribution (NDC) pension schemes convert accumulated pension wealth into an annuity, based on an average life expectancy at retirement. When longevity differs across social groups, a single conversion factor implies systematic transfers from shorter-lived to longer-lived individuals. This motivates proposals to differentiate benefits by socio-demographic characteristics related to life expectancy. We study whether such differentiation is perceived as fair using a survey experiment involving 3, 004 Italian residents aged 18-66. Respondents completed an incentivised allocation task used to elicit their fairness views and then evaluated six reform scenarios that adjust pension benefits based on gender, region, income, household wealth, workplace fatigue, and health status. The results show that the fatigue-based and wealth-based scenarios receive the highest support, whereas the gender-based and region-based scenarios are strongly opposed. Self-interest predicts approval, with higher support among those who stand to gain from a reform. Respondents with libertarian views are consistently less supportive of changes in benefits, while egalitarians and, to a lesser extent, liberal egalitarians are more favourable. Our results inform policymakers on the importance of citizens’ fairness perceptions for the implementation and communication of financially sustainable pension reforms. |
| Keywords: | Pensions, Fairness, Life Expectancy, Survey Experiment, Redistribution, Italy |
| JEL: | H55 D63 C91 C38 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:ver:wpaper:01/2026 |
| By: | Badalyan, Sona (IAB, CERGE-EI) |
| Abstract: | "I study how delayed retirements reshape firms internal labor markets, leveraging a German reform that raised womens early retirement age by at least three years. The reform increased retention of older women and reduced both internal promotions and external hiring of younger coworkers, with the greatest losses among middle-aged workers who were near to older workers on the career ladder. Spillovers are structured: promotion crowd-outs arise in thick internal labor markets with intense competition, while hiring declines are largest in thin external markets with high turnover costs. Crowd-out effects concentrate within jobcells, whereas coworkers in different jobcells can benefit when retained older workers possess specific human capital. Taken together, the evidence supports slot-constraint theoriesaugmented by firm-specific human-capital mechanisms." (Author's abstract, IAB-Doku) ((en)) |
| JEL: | H55 J21 J23 J24 J26 J31 J63 M51 |
| Date: | 2026–01–28 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabdpa:202601 |
| By: | Sadettin Haluk Çitçi (Gebze Technical University); Halit Yanikkaya (Gebze Technical University); Yunis Dede (Gebze Technical University) |
| Abstract: | We examine whether households’ voluntary retirement saving decisions are influenced by reinforcement learning (RL), a behavioral heuristic where recent outcomes disproportionately shape future choices. Using eight years of universe-wide administrative data from Türkiye’s Individual Pension System, we show that savers over-weight recent return experiences. Specifically, individuals experiencing higher returns in one year substantially increase their voluntary contributions in the following year, and past returns continue to affect contributions with a diminished but persistent impact. The implied one-year learning weight is moderate, closely mirroring laboratory estimates. Alternative explanations such as inertia, skill learning, or asset rebalancing do not explain these observed behaviors |
| Date: | 2025–10–20 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1799 |
| By: | Serdar Birinci; Miguel Faria-e-Castro; Kurt See |
| Abstract: | We use an overlapping-generations model with incomplete markets and a frictional labor market to study how assumptions about agents’ expectations of changes in returns to wealth affect labor supply and retirement decisions. Focusing on 2020–23, when returns fluctuated sharply and retirements rose above trend, we find that when individuals internalize the dependence of returns on wealth and view changes in returns as persistent, the model generates counterfactual labor-market outcomes. Retirements fall because expectations of persistently high returns boost labor supply, outweighing wealth effects, and the model predicts retirements concentrated among the very wealthy, contrary to the microdata. |
| Keywords: | labor supply; retirement; heterogeneous returns; incomplete markets |
| JEL: | E24 G11 J21 J22 J26 |
| Date: | 2025–11–17 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:102353 |
| By: | Gordon Anderson (Institute for Fiscal Studies) |
| Date: | 2026–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:ifs:ifsewp:26/08 |
| By: | Palma, Andrea |
| Abstract: | Como parte del proceso de fortalecimiento del sistema de protección social en Honduras, es fundamental avanzar en la creación de un sistema de pensiones no contributivo que permita reducir los altos niveles de pobreza en la vejez. Este documento ofrece propuestas y orientaciones para avanzar en esa dirección. Desde un enfoque de derechos y universalismo sensible a las diferencias, se examina el ciclo de la política pública aplicado a la creación de esta prestación, incorporando recomendaciones desde la identificación del problema hasta la implementación de la política. El documento identifica las condiciones habilitantes para el diseño e instalación de un sistema de pensiones no contributivo en las dimensiones normativa, organizacional, técnico-operativa y financiera, y plantea estrategias de seguimiento y evaluación, comunicación pública y fortalecimiento de alianzas para su instalación. De esta forma, propone una hoja de ruta técnica y estratégica que contribuya a fortalecer un sistema de protección social universal, integral, sostenible y resiliente en el país. |
| Date: | 2025–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:84467 |
| By: | Hammitt, James K. |
| Abstract: | Weighted benefit-cost analysis is receiving increased attention as a method to incorporate concerns about the distribution of policy effects across individuals. Weights are intended to reflect interpersonal differences in the effect of income on wellbeing (the marginal utility of income) and the social value of improving the wellbeing of different individuals. Lacking an objective method for comparing differences or levels of wellbeing between individuals, multiple approaches to estimating how the marginal utility of income depends on income or other factors have been developed, but each of these requires strong assumptions that are not always recognized. This suggests that weights must be chosen judgmentally. Holding income constant, weights are likely to be smaller for older people, due to shorter remaining life expectancy and other factors. |
| Keywords: | weighted benefit-cost analysis; social welfare function; wellbeing; marginal utility |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:131365 |