|
on Economics of Ageing |
| By: | Juan Ayuso (Banco de España); Juan F. Jimeno (Banco de España; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)); Ernesto Villanueva (Banco de España) |
| Abstract: | This paper uses a Spanish panel of tax returns and another on household expenditure during the period 1985-1991 to examine the incidence of the introduction in 1988 of tax incentives to retirement savings on contributions to pension funds and on savings. We first identify the population cohorts who most used these incentives. Then we use data on the evolution of consumption of these cohorts to find that there is substantial heterogeneity in the response of household saving to tax incentives. Most contributions to pension funds are by older/high income individuals. While the overall amount of new saving we estimate is limited (at most 25 cents per euro contributed on average), saving responses differ substantially across age groups. In particular, we document very small consumption drops among the group of households between 56 and 65 years of age, the group that most actively contributed to the plan, while we find instead a larger decrease in consumption expenditures of the group of households between 46 and 55 years of age. |
| Keywords: | pension funds, tax incentives, savings |
| JEL: | D14 H24 H55 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:0724&r=age |
| By: | Torbjørn Hægeland, Dag Rønningen and Kjell G. Salvanes (Statistics Norway) |
| Abstract: | Older workers typically possess older vintages of skills than younger workers, and they may suffer more from technological change. Experienced workers may nevertheless have accumulated human capital making them suitable for adopting new technologies. On the other hand, to adjust to new technologies, workers must invest in training. This may not be worthwhile for the oldest workers, and technological change may thus induce early retirement. If technological change occurs often, workers will continuously invest in training, which may insulate them from the negative effect of technological change. We exploit the approach by Bartel and Sicherman (1993) to identify this effect by estimating the retirement response to technological change. We examine two hypotheses about the effects of technological changes on early retirement for workers from the age of 50 to the mandatory age of retirement at 67. First, we examine whether workers in firms with higher rates of anticipated technological change retire later than workers in firms with lower rates of technological change. Second, we examine if unanticipated technological change is positively correlated with earlier retirement. We use a matched employer-employee data set with a rich set of controls for worker, firm and local labour market characteristics, and firm level measures of anticipated and not-anticipated technological change. We find a negative correlation between early retirement and anticipated technological change only for the oldest male workers (62 to 66). Further, we find a higher probability of transition to retirement for workers above 60 for firms introducing new process technologies. |
| Keywords: | Technological changes; early retirement |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:509&r=age |
| By: | Leonardo Gasparini (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata); Javier Alejo (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata); Francisco Haimovich (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata); Sergio Olivieri (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata); Leopoldo Tornarolli (Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) - Universidad Nacional de La Plata) |
| Abstract: | This paper provides evidence on the incidence of poverty among the elderly in Latin America and the Caribbean, based on household survey microdata from 20 countries. The situation of older people is characterized in terms of income, employment, education, health and access to services vis-à-vis the rest of the population. The paper identifies the role played by the current pension systems in Latin America, and assesses the efforts needed to achieve substantial improvements toward the reduction of old-age poverty. |
| Keywords: | elderly, ageing, poverty, Latin America, Caribbean |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:dls:wpaper:0055&r=age |
| By: | Francesco MARCHIONNE (Universita' Politecnica delle Marche, Dipartimento di Economia) |
| Abstract: | Amato reform ('92), Dini reform ('95), Prodi reform ('98), Maroni-Berlusconi reform ('04): in the last 15 years all governments have modified the Italian pension system. What has changed? What will change? Why? What are the goals? In the chaos of reforms the only certainty for the citizens seems that future pensions will be lower than present ones. But ... how lower will they be? Who has really "won" the reform match? In the general reduction in performance, who has "lost less"? And above all, is the era of reforms in Italy over or is it just the first half of a "film"? In the following pages, I will try to answer to all these questions. In the first part, I will analyze the characteristics of the Italian pension system before the 90's reforms to understand how they have affected the pension system system. In the second part, I will try to foresee the effects these reforms will have in the next decade through a microsimulation model. This model has been created with an innovative procedure based on an integrated (and non sequential) simulation of events. This new approach should guarantee more efficiency with respect to the traditional one even though there are some technical complications in its implementation. Two main results have been obtained. The first one is that actuarial equity is mainly achieved by homogenising regimes and by raising the minimum requisites for being eligible for pension ('92 reform) more than through the introduction of defined contributions ('95 reform). The second result is that excessive lowering of benefits affects negatively on actuarial equity weakening a basic principle established by the reforms themselves. Practically, the non-division of assistance from pension system and the low level of performance determine unhomogeneous benefits. From a pure actuarial defined contribution system point of view, it is unjustified. Without praising how much good has been achieved till date, the new reforms should be aimed at overcoming these precise obstacles. |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:291&r=age |