nep-dem New Economics Papers
on Demographic Economics
Issue of 2023‒11‒13
two papers chosen by
Héctor Pifarré i Arolas, University of Wisconsin

  1. Productivity and quality-adjusted life years: QALYs, PALYs and beyond By Hansen, Kristian S.; Moreno-Ternero, Juan D.; Østerdal, Lars P.
  2. Graying and staying on the job: The welfare implications of employment protection for older workers By Morries, Todd; Dostie, Benoît

  1. By: Hansen, Kristian S. (National Research Centre for the Working Environment (NFA)); Moreno-Ternero, Juan D. (Department of Economics, Universidad Pablo de Olavide); Østerdal, Lars P. (Department of Economics, Copenhagen Business School)
    Abstract: We develop a general framework for the evaluation of health and productivity of a population of individuals. In such a framework, we characterize Productivity-and-Quality-Adjusted Life Years evaluation functions, which range from the classical Quality-Adjusted Life Years (QALYs) to its polar Productivity-Adjusted Life Years (PALYs). Our frame-work and characterization results provide a new normative basis for the economic evalu-ation of health care or occupational health and safety policies.
    Keywords: Health; productivity; QALYs; PALYs; axioms
    JEL: D63 I10 J24
    Date: 2023–10–23
  2. By: Morries, Todd; Dostie, Benoît
    Abstract: We study the welfare implications of employment protection for older workers, exploiting recent bans on mandatory retirement across Canadian provinces. Using linked employeremployee tax data, we show that the bans cause large and similar reductions in job separation rates and retirement hazards at age 65, with further reductions at higher ages. The effects vary substantially across industries and firms, and around two-fifths of the adjustments occur between ban announcement and implementation dates. We find no evidence that the demand for older workers falls, but the welfare effects are mediated by spillovers on savings behavior, workplace injuries, and spousal retirement timing.
    Keywords: employment protection, retirement, welfare, active and passive savings responses, health effects, spousal spillovers
    JEL: J26 J78 H55
    Date: 2023

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