nep-dem New Economics Papers
on Demographic Economics
Issue of 2022‒08‒08
two papers chosen by
Héctor Pifarré i Arolas
University of Wisconsin

  1. Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes By Kaufmann, Katja Maria; Özdemir, Yasemin; Ye, Han
  2. Old age takes its toll: long-run projections of health-related public expenditure in Luxembourg By Gastón A. Giordana; María Noel Pi Alperin

  1. By: Kaufmann, Katja Maria (University of Mainz); Özdemir, Yasemin (University of Mainz); Ye, Han (University of Mannheim)
    Abstract: We study the impact of grandparental retirement decisions on family members' labor supply and child outcomes by exploiting a Dutch pension reform in a fuzzy Regression Discontinuity design. A one-hour increase in grandmothers' hours worked causes adult daughters with young children to work half an hour less. Daughters without children, with older children and sons/daughters-in-law are not affected. We show important long-run impacts on maternal labor supply and on the child penalty. Test score effects are positive for children aged 4-7 (substitution from grandparental to maternal care), and negative for children aged 11-12 (substitution from grandparental to formal childcare).
    Keywords: spillover effects, retirement, grandparental childcare, maternal labor supply, child development
    JEL: J22 J26 I38 D64
    Date: 2022–06
  2. By: Gastón A. Giordana; María Noel Pi Alperin
    Abstract: This paper simulates long-term trends in Luxembourg’s public expenditure on healthcare and on long-term care. We combine population projections with micro-simulations of individuals’ health status that account for their demographic, socio-economic characteristics and their childhood circumstances. Model equations estimated on data from the SHARE survey and from several branches of Social Security provide a rich framework to study policy-relevant applications. We simulate public expenditure on healthcare and long-term care under different scenarios to evaluate the separate contributions of population ageing, costs of producing health-related services, and the distribution of health status across age cohorts. Results suggest that rising per capita expenditure on healthcare will mostly result from production costs, while rising expenditure on long-term care will mostly reflect population ageing.
    Keywords: Ageing, Dynamic micro-simulation, Healthcare, Health-related public expenditure, Health status, Long-term care, Luxembourg, SHARE.
    JEL: D3 H30 I10 I12
    Date: 2022–04

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