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on Economics of Ageing |
| By: | Luca, MARCHIORI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics) |
| Abstract: | A transition from pay-as-you-go pension systems to more private funded systems is often suggested as a solution to finance pension systems threatened by ageing. This paper analyses alternative potential remedies linked to changes in labour market characteristics, within an international computable overlapping-generations model of the world economy. A prolongation of the working life of skilled or unskilled individuals, an increase in the demand of skills, a rise in the education levels and increased skilled or unskilled immigration have very different outcomes in North-America and in Europe. In the latter region, a postponement in the retirement age of unskilled individuals has the most beneficial effect in relieving the fiscal pressure on pensions systems, because the proportion of unskilled workers is relatively larger in Europe than in North-America. In North-America, where skilled labour is more abundant, an acceleration in skill-biased technical change has the biggest impact on pensions systems, as it raises the productivity of skilled workers. |
| Keywords: | OLG-CGE Model, ageing, labour market, migration |
| JEL: | C68 H55 O30 J26 J61 |
| Date: | 2008–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvec:2008001&r=age |
| By: | Golo Henseke (University of Rostock and Rostock Centre for the Study of Demographic Change, Germany); Pascal Hetze (Rostock Centre for the Study of Demographic Change, Germany); Thusnelda Tivig (University of Rostock and Rostock Centre for the Study of Demographic Change, Germany) |
| Abstract: | Population aging translates into aging of the labor force. However, the impact of the former on the latter is neither straightforward nor uniform over specific groups. The reason is that economic decisions concerning, for example, duration of schooling or labor-market participation of women and those aged 60+ as well as industry-specific requirements on the demand side affect age-specific employment rates and thus the age structure of labor. In this paper we describe and use different measures of aging to obtain a picture of the aging process in selected German industries and professions between 1980 and 2000. Our results reveal pronounced differences in the age structure, timing and dynamics of aging. However, we find that aging is, in general, subject to convergence towards a homogenous age composition: Subgroups that were relatively young in 1980 aged faster, and vice versa. |
| JEL: | J21 J11 J01 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:ros:wpaper:42&r=age |
| By: | Steven G. Prus; Robert L. Brown |
| Abstract: | Objectives -- The study has two primary goals. First, to test the hypothesis that higher levels of income inequality are related to lower levels of population health with updated data from around year 2000. Second, to examine the inequality-health relationship across the life course with particular focus on old age when income distributions often shift dramatically. Design -- Correlation techniques were used to assess the relationship between income inequality (Gini ratio) at ages 0+, 25+, 65+, 75+, and 85+ and life expectancy at corresponding ages (0, 25, 65, 75, 85) by sex, before and after adjusting for average population income. Analyses were conducted on two sets of data: 18 wealthy countries and 28 wealthy and non-wealthy countries.<br> Data sources -- International cross-sectional data on income and life expectancy from about year 2000 were derived from the Luxembourg Income Study and the United Nations Demographic Yearbook respectively.<br> Results -- Among wealthy countries the negative effect of income inequality on life expectancy at birth becomes insignificant after controlling for average absolute income: the correlation coefficient changes from -0.603 to -0.207 for men and -0.605 to 0.024 for women. A similar pattern is observed at age 25. By contrast, the effect becomes increasingly positive and significant across old age, notably for males, regardless of adjustments for average population income or countries of observation.<br> Conclusions -- These updated results do not support the inequality-health hypothesis. The relationship between income inequality and life expectancy at earlier ages in wealthy countries can be explained by the confounding effect of average absolute income. In old age the data are entirely contrary to the hypothesis. More research is needed to understand the mechanisms that facilitate the increasing positive effect of income inequality on life expectancy in late life. |
| Keywords: | Cross-national; Income Inequality; Population Health; Life Expectancy; Age |
| JEL: | I10 D63 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:sedapp:229&r=age |