|
on Economics of Ageing |
| By: | Manuela Bosch-Princep (Universitat de Barcelona); Daniel Vilalta (Independent Pension Consultant) (Universitat de Barcelona) |
| Abstract: | The aim of this paper is to analyse the effect of the recent Social Security reform on public retirement benefits. The main measures af- fecting the calculation of pensions are: 1) extension of the retirement age from 65 to 67 years, 2) changes in covered earnings of the retirement pension, 3) changes in the weighting factor associated with the number of years of contributions to the system at date of retirement and 4) changes in the early retirement rules. The study distinguishes three group of pensioners and compares be- tween previous pension (benchmark pension) and the pension calculated under the new legislation. The reduction in public retirement benefits ranges between 0% and 16% depending on wages and the number of years of contributions at the time of retirement. |
| Keywords: | social security reforms, public retirement pension |
| JEL: | H55 J62 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:bar:bedcje:2012281&r=age |
| By: | John Piggott (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); Rafal Chomik (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | Australia’s retirement income provision system, comprising the “three pillars” of a means-tested Age Pension, mandatory occupational Superannuation and other, voluntary long term savings, is at the heart of understanding the fiscal implications of ageing. While the Intergenerational Report, an account of long term fiscal sustainability, is celebrating its tenth birthday since the first edition was published, the Superannuation Guarantee (SG), first implemented in 1992, is about to turn a sprightly twenty. This paper considers the intergenerational reports as a prism for studying fiscal, demographic, and policy developments in the Australian retirement income system over the last decade and into the future. |
| Keywords: | Intergenerational Report, Retirement, Pensions, Superannuation, Population Ageing |
| JEL: | H55 J11 J14 J26 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201214&r=age |
| By: | Emilio Bisetti; Carlo A. Favero |
| Abstract: | This paper estimates the impact of longevity risk on pension systems by combining the prediction based on a Lee-Carter (1992) mortality model with the projected pension payments for different cohorts of retirees. We measure longevity risk by the difference between the upper bound of the total old-age pension expense and its mean estimate. This difference is as high as 4 per cent of annual GDP over the period 2040-2050. The impact of longevity risk is sizeably reduced by the introduction of indexation of retirement age to expected life at retirement. Our evidence speaks in favour of a market for longevity risk and calls for a closer scrutiny of the potential redistributive effects of longevity risk. Keywords: stochastic mortality, longevity risk, social security reform JEL Classification Numbers J11,J14 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:439&r=age |
| By: | Gilles Le Garrec (Observatoire Francais des Conjonctures Economiques) |
| Abstract: | In many European countries, due to population aging, the switch from conventional unfunded public pension systems to notional systems character- ized by individual accounts is in debate. In this article, we develop an OLG model in which endogenous growth is based on an accumulation of knowledge driven by the proportion of skilled workers and the time they have spent to be trained. In such a framework, we show that conventional pension systems, contrary to notional systems, can enhance economic growth by linking bene- ?ts only to partial earnings history. Thus, considering economic growth, the optimal adjustment to aging could consist in increasing the size of existing retirement systems rather than switching to notional systems. |
| Keywords: | social security,intertemporal choice, human capital |
| JEL: | H55 D91 E24 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1218&r=age |
| By: | Fang Yang |
| Abstract: | The data show large dispersion in household's wealth holding at retirement. In addition, the empirical correlation between household lifetime earnings and retirement wealth is much lower in the data than in many quantitative models. This paper quantifies and analyzes the implications of a life cycle model with intergenerational links (in the form of voluntary bequest motives and intergenerational transmission of ability) that also explicitly allows for defined benefit pensions, history-dependent social security, and a government-provided minimum consumption floor. The key finding is that this model goes a long way toward matching the observed wealth differences at retirement and their correlation with lifetime incomes. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nya:albaec:12-03&r=age |
| By: | Hollanders, D.A. (Tilburg University) |
| Abstract: | The main topic of this dissertation is the effect of aging on pension systems. The first chapter serves as an introduction. Chapters 2, 3 and 4 analyze the effect of aging on intergenerational risk sharing, public pension expenditure, and the asset allocation of pension funds respectively. Chapter 5 shows how a pension fund can improve participants' welfare by facilitating financial transactions between generations. Chapter 6 is more general and focuses on the politics of reforms of welfare programs, including pension reforms. Finally, the seventh chapter is not related to pensions; it analyzes the association between media coverage and consumer confidence. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ner:tilbur:urn:nbn:nl:ui:12-5556748&r=age |
| By: | Vincenzo Galasso (Università della Svizzera Italiana, Dondena, IGIER and CEPR, Switzerland); Paola Profeta (Econpubblica and Dondena, Università Bocconi, Italy) |
| Abstract: | We study how the prevailing internal organization of the family affected the initial design of pension systems. Our theoretical framework predicts that, in society with weak family ties, pensions systems were introduced to act as a safety net, while in societies with strong ties they replicate the tight link between generations by providing generous benefits. Using a historical classification of family ties, we show that in societies dominated by (weak ties) absolute nuclear families (f.i. Anglo-Saxon countries), safety net pension systems emerged; and viceversa in societies dominated by strong families. These results are robust to controlling for alternative legal, religious, and political explanations. Evidence on individual data confirm these findings: US citizens whose ancestors came from countries featuring strong ties (communitarian or egalitarian nuclear) families prefer to rely on the government as a provider of old age security through generous retirement benefits. |
| Keywords: | culture; family ties, pension design |
| JEL: | Z10 Z13 N30 H10 H55 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cccrwp:2012-04-ccr&r=age |
| By: | Emma Gorman; Grant M Scobie; Andy Towers (The Treasury) |
| Abstract: | Increasing life expectancies and uncertainty about future retirement incomes are likely to lead to various changes in behaviour. As expectations are revised, one potentially important adjustment mechanism is in labour force participation rates. There is already evidence these are rising for those beyond the age of eligibility for New Zealand Superannuation. This paper uses a new source of longitudinal data on the health, labour force participation and retirement decisions of older New Zealanders. The central question addressed is the extent to which labour force participation of older New Zealanders is influenced by their health status (both mental and physical), in addition to a wide range of economic, social and demographic variables. Discrete choice models are employed, and particular attention is given to the potential effects of unobserved heterogeneity. We find a range of factors to be associated with the decision to retire, notably health status, marital status and financial incentives. After accounting for the confounding influence of unobservables, we find that physical health remains a determinant of labour force exit for older males. Further, we estimate both the marginal and aggregate effects of specific chronic conditions on labour force participation. |
| Keywords: | Labour force participation; Health; Retirement; New Zealand; Longitudinal survey |
| JEL: | J26 J14 J21 I10 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:nzt:nztwps:12/02&r=age |
| By: | Cagri Seda Kumru (Research School of Economics, The Australian National University and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); John Piggott (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | This paper studies the interaction between capital income taxation and a means tested age pension in the context of an overlapping generations model, calibrated to the UK economy. Recent literature has suggested a rehabilitation of capital income taxation (Conesa et al. (2009)), predicated on the idea that capital is a complement with retirement leisure. This leads naturally to the conjecture that a publicly funded age pension contingent upon holdings of capital or capital income may have a similar effect. We formalize this using a stochastic OLG model with multiple individuals differentiated by labour productivity and pension entitlement. Our preliminary findings suggest that a means tested pension has effects similar to capital income taxation in a life-cycle context. |
| Keywords: | Dynamic general equilibrium, taxation, welfare |
| JEL: | E21 E62 H55 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201215&r=age |
| By: | Steven A. Sass |
| Abstract: | A key challenge many households entering retire-ment face is how to use their savings as a source of income. As 401(k)s replace traditional defined benefit pensions and as Social Security replaces a smaller share of household pre-retirement earnings, draw-ing an income from savings becomes increasingly important. Households have three traditional options. First, they could put their savings in safe assets, preserving the value of their principal, and live on the interest. Second, they could invest their savings in a portfolio of stocks and bonds and draw out an income. Third, they could buy an annuity from an insurance compa-ny, giving up their savings in exchange for a lifetime income. In addition to these three traditional options, households could use their savings to “buy” an an-nuity from Social Security: they could delay claiming their Social Security benefits to get a higher monthly benefit at an older age, using their savings in the interim to pay current expenses. The savings used is the “price” and the increase in monthly benefits is the annuity it “buys.” |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2012-10&r=age |
| By: | Larochelle-Côté, Sébastien<br/> Myles, John F.<br/> Picot, Garnett |
| Abstract: | The financial security of widowed and divorced women during their retirement years has long been a concern. This paper places this issue within the context of research on replacement rates, the extent to which family income during the working years (here, the mid-50s) is "replaced" as individuals move into their late 70s. Using a longitudinal database and fixed-effects econometric models, the paper assesses the effect of widowhood/widowerhood and divorce after age 55 on replacement rates during the retirement years. |
| Keywords: | Seniors, Labour, Wages, salaries and other earnings, Income, pensions and wealth |
| Date: | 2012–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3e:2012343e&r=age |
| By: | Joelle H. Fong (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); John Piggott (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); Michael Sherris (School of Risk and Actuarial Studies and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | This paper assesses the cost and risk faced by public sector, defined benefit plan providers arising from uncertain mortality, including longevity selection, mortality improvements, and unexpected systematic shocks. Using longitudinal micro data on Australian pensioners, we quantify the extent of longevity selection at both aggregate and scheme level. We also show that as the age-membership structure in a pension scheme matures, scheme-specific longevity selection risk and systematic shocks become quantitatively more important and have larger consequences for plan liabilities than aggregate selection risk or the impact of mortality improvements. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201217&r=age |
| By: | George Kudrna (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); Alan Woodland (School of Economics and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | In this paper we investigate the macroeconomic and welfare effects of the major changes of the mandatory superannuation reform proposed in the 2010-11 Australian federal budget. These changes include gradual increases in the mandatory employer contributions from 9 to 12 percent of gross earnings and a policy that effectively removes the concessional 15 percent tax on mandatory contributions for workers with annual taxable income of up to $37,000. Using a computable overlapping generations model that incorporates main aspects of mandatory superannuation, the means tested age pension and progressive personal income taxation, we find significantly larger superannuation asset accumulations as a result of the reform, which generate increases in domestic total assets and household saving. The reform improves self-funding in retirement, with government expenditures on the age pension falling by almost 4.6 percent in the long run. The reform also has positive impacts on households' long run welfare, with higher income households solely benefiting from the increased superannuation contributions while lower income households from the contribution tax removal. The aggregate efficiency calculations indicate that the superannuation reform improves efficiency, generating a gain of almost 0.8 percent or $11,753 in initial resources for each future generation. |
| Keywords: | Compulsory saving; pension reform; dynamic OLG model |
| JEL: | H55 E21 C68 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201210&r=age |
| By: | Daniel Alai (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); Michael Sherris (School of Risk and Actuarial Studies and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | Longevity risk arising from uncertain mortality improvement is one of the major risks facing annuity providers and pension funds. In this paper we show how applying trend models from non-life claims reserving to age-period-cohort mortality trends provides new insight in estimating mortality improvement and quantifying its uncertainty. Age, period, and cohort trends are modelled with distinct effects for each age, calendar year, and birth year in a generalized linear models framework. The effects are distinct in the sense that they are not conjoined with age coefficients, borrowing from regression terminology, we denote them as main effects. Mortality models in this framework for age-period, age-cohort, and age-period-cohort effects are assessed using national population mortality data from Norway and Australia to show the relative significance of cohort effects as compared to period effects. Results are compared with the traditional Lee-Carter model. The bilinear period effect in the Lee-Carter model is shown to resemble a main cohort effect in these trend models. However the approach avoids the limitations of the Lee-Carter model when forecasting with the age-cohort trend model. |
| Keywords: | Mortality Modelling, Age-Period-Cohort Models, Generalized Linear Models, Lee-Carter Models |
| JEL: | G22 G23 C51 C18 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201212&r=age |
| By: | Madies, Thierry (University of Fribourg); Villeval, Marie Claire (CNRS, GATE); Wasmer, Malgorzata (University of Fribourg) |
| Abstract: | We study the attitudes of junior and senior employees towards strategic uncertainty and competition, by means of a market entry game inspired by Camerer and Lovallo (1999). Seniors exhibit higher entry rates compared to juniors, especially when earnings depend on relative performance. This difference persists after controlling for attitudes towards non-strategic uncertainty and for beliefs on others' competitiveness and ability. Social image matters, as evidenced by the fact that seniors enter more when they predict others enter more and when they are matched with a majority of juniors. This contradicts the stereotype of risk averse and less competitive older employees. |
| Keywords: | aging, risk, ambiguity, competitiveness, self-image, confidence, experiment |
| JEL: | C91 D83 J14 J24 M5 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6642&r=age |
| By: | Huang, X.; Mahieu, R.J. (Tilburg University) |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ner:tilbur:urn:nbn:nl:ui:12-5556493&r=age |
| By: | Loretti Dobrescu (School of Economics and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); Dimitris Christelis (CSEF, Dept. of Economics, University of Naples Federico II); Alberto Motta (School of Economics, Australian School of Business, University of New South Wales) |
| Abstract: | Using life-history survey data from eleven European countries, we investigate whether childhood conditions, such as socioeconomic status, cognitive abilities and health problems influence portfolio choice and risk attitudes later in life. After controlling for the corresponding conditions in adulthood, we find that superior cognitive skills in childhood (especially mathematical abilities) are positively associated with stock and mutual fund ownership. Childhood socioeconomic status, as indicated by the number of rooms and by having at least some books in the house during childhood, is also positively associated with the ownership of stocks, mutual funds and individual retirement accounts, as well as with the willingness to take financial risks. On the other hand, less risky assets like bonds are not affected by early childhood conditions. We find only weak effects of childhood health problems on portfolio choice in adulthood. Finally, favourable childhood conditions affect the transition in and out of risky asset ownership, both by making divesting less likely and by facilitating investing (i.e., transitioning from non-ownership to ownership). |
| Keywords: | Portfolio Choice, Childhood, Socioeconomic Status, Cognition, Health, Financial Risk |
| JEL: | G11 D14 E21 J13 C23 C25 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201208&r=age |
| By: | Elisabetta Magnani (School of Economics and ARC Centre for Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | Training (for workers) and innovation (for workplaces) are not free lunches. From the viewpoint of the firm, training is also highly risky, because there is uncertainty over the size of any future returns from employer-provided training. Stylized facts stress that constraints in achieving preferred working hours have major impacts on job satisfaction. Consequently hour constraints may lead to workers' job mobility and older workers' retirement. Firms internalize the risk of workers' mobility by reducing their training investments in these workers. I contrast this model with a signalling model of hour constraints where, in the face of asymmetric information over workers' quality and reliability, and so over profitability of training, workers may trade present hour constraints (at the current wage), for training (and future wage) opportunities. This set of reasoning implies that, empirically, we should observe a positive correlation between training and hour constraints at the individual level. I use two matched employer-employee datasets, for Australia and Canada respectively, to test the competing empirical implications of these two models for the link between hour constraints and training. The main result of this study is that there is little support for hour constraints as a signal of future reliability and productivity. Rather, hour constrained individuals appear to have less chance to receiving training. This result survives a number of robustness exercises that attempt to control for selection on observables and selection on unobservables that determine the hour constraint outcome. Institutional differences in the retirement funding system, and the differential appeal of outside option (the option of exiting the labour force) in Australia and Canada in the two survey years contribute to explain the different patterns of training and hour constraints older workers face in these two countries. |
| Keywords: | Employer-provided training, hour constraints, older workers, technological change, organizational change |
| JEL: | J1 J2 J6 O3 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201205&r=age |
| By: | Loretti Dobrescu (School of Economics and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); Dimitris Christelis (CSEF, Dept. of Economics, University of Naples Federico II) |
| Abstract: | Using data from eleven countries from the Survey of Health, Ageing and Retirement in Europe, the authors investigate the impact of engaging in social activities on cognition, as measured from scores in tests on numeracy, fluency and immediate and delayed recall. We deal with the endogeneity of social activities by using panel data and instrumental variable methods. We find that social activities have an important positive effect on cognition, with the results differing by sex. The effect on fluency and immediate recall is strong for females, while numeracy is affected only in the case of males. There is an effect on delayed recall for both sexes. |
| Keywords: | Cognition, Ageing, Social Activities, SHARE, Panel Data |
| JEL: | I10 J14 C23 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201207&r=age |
| By: | Pablo Antolín; Debbie Harrison |
| Abstract: | This paper examines and evaluates the content and design of the annual pension statement sent to members of funded defined contribution (DC) pension schemes in a selection of OECD and non-OECD countries. The aims of the research are to identify the potential shortcomings in statement planning and design processes, to consider potential barriers in communications to members, and to highlight trends and models of good practice in these critical areas. The overarching objective is to develop recommended guidelines for organisers, so that the statement can be developed as an effective (impact) and efficient (cost-benefit analysis, value for money) medium to deliver essential member information and to encourage appropriate member actions.<P>Relevés annuels de retraite des plans à cotisations définies et le défi<BR>Ce document examine et évalue le contenu et la forme du relevé annuel de retraite envoyé aux adhérents des plans de retraite par capitalisation à cotisations définies dans certains pays de l?OCDE et hors OCDE. Les objectifs de le recherche sont d?identifier les éventuels défauts dans les processus de planification et de conception du relevé, de considérer les barrières potentielles dans les communications aux adhérents et de souligner les tendances et modèles de bonnes pratiques dans ces domaines essentiels. L?objectif global est de développer des directives recommandées pour les organisateurs, de manière à ce que le relevé puisse être élaboré comme un moyen efficace (impact) et efficient (analyse de rentabilité, rapport qualité/prix) pour délivrer l?information essentielle aux adhérents et encourager des actions appropriées de leur part. |
| Keywords: | defined contribution, financial education, communication, financial literacy, Pension statement |
| JEL: | D14 D18 G23 G28 I28 J26 O16 O19 |
| Date: | 2012–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaad:19-en&r=age |
| By: | Meliyanni Johar (Economics Discipline Group and Centre for the Study of Choice, Business School, University of Technology Sydney); Shiko Maruyama (School of Economics and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | When siblings wish for the wellbeing of their elderly parents, the cost of care giving and long-term commitment creates a free-rider problem among siblings. We estimate a sequential game to investigate externality and strategic interaction among adult siblings regarding their location choice relative to their elderly parents. Using the US Health and Retirement Survey, we find a positive externality and strategic interaction. The first-mover advantage of eldest children and the prisoner's dilemma are likely to exist but their magnitudes are negligible compared with inefficiency in joint utility. Inefficiency is large in a family with an educated, widowed mother and with educated siblings who are younger (relative to parents), married, and similar to each other. Had siblings fully internalized externality and jointly maximized utility sum in 2010, 17% more parents with multiple children would have had a child nearby. Public policies that reduce children's private costs may enhance social welfare. |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201201&r=age |
| By: | Elisabetta Magnani (School of Economics and ARC Centre for Population Ageing Research, Australian School of Business, University of New South Wales); Garima Verma (The Allen Consulting Group, Sydney, and School of Economics, The Australian School of Business, University of New South Wales); Anu Rammohan (Department of Economics, The Business School, University of Western Australia) |
| Abstract: | We model the allocation of time resources by adult children between competing caring activities - those towards coresiding elderly and those towards coresiding children. We test the implications of our model for children's school performance by focusing on Indonesia, a country characterized by heterogeneity in social norms, population ageing and reliance on the family for elderly support. Specifically, we exploit the unique richness of the Indonesian Family Life Survey (IFLS) (Wave 2 to Wave 4) to find robust evidence of a negative impact on children's school achievement of social norms regulating elderly bequests to coresiding adult carers. |
| Keywords: | Intra-household care-giving, children’s education, social norms, co-residence with elderly |
| JEL: | D1 I2 J2 O1 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201206&r=age |
| By: | George Kudrna (ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales); Alan Woodland (School of Economics and ARC Centre of Excellence in Population Ageing Research, Australian School of Business, University of New South Wales) |
| Abstract: | Tax concessions are a common feature of private pension pillars around the world. Most countries exempt pension fund earnings from any taxation but tax either benefits (EET regime) or contributions (TEE regime) progressively as regular private income. By contrast, Australia's superannuation taxation features concessional flat tax rates on contributions and fund earnings, with benefits being generally tax free. Concerned with the vertical equity of the current superannuation tax concessions, this paper provides a quantitative analysis of hypothetical replacements of the existing superannuation tax treatment with the EET and TEE regimes commonly found in other countries. Using a general equilibrium OLG model calibrated for Australia, we find that these hypothetical tax reforms to superannuation improve the vertical equity in the short, medium and long run, as indicated by larger relative welfare gains and income improvements experienced by lower income households. |
| Keywords: | Compulsory saving, pension and tax reforms, dynamic OLG model |
| JEL: | H55 E21 C68 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:asb:wpaper:201209&r=age |
| By: | Fang Yang |
| Abstract: | This paper studies the long-run aggregate and welfare effect of eliminating Social Security in a quantitative dynamic general equilibrium life-cycle model where parents and their chidren are linked by voluntary and accidental bequests. Social Security in this model with impure altruism has a smaller effect on capital accumulation than in a pure life-cycle model, a bigger effect than in a model with two-sided altruism. The welfare gain of eliminating Social Security system under impure altruism is smaller than that in a pure life-cycle model, and bigger than that in a model with two-sided altruism. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nya:albaec:12-01&r=age |
| By: | Larochelle-Côté, Sébastien<br/> Myles, John F.<br/> Picot, Garnett |
| Abstract: | La sécurité financière des veuves et des femmes divorcées durant la retraite est depuis longtemps un sujet de préoccupation. Dans le présent article, la question est examinée dans le contexte de travaux de recherche sur les « taux de remplacement du revenu », c'est-à-dire la mesure dans laquelle le revenu familial durant les années d'activité (ici, la mi-cinquantaine) est « remplacé » à mesure que les personnes approchent 80 ans. Fondée sur une base de données longitudinale et sur des modèles économétriques à effets fixes, l'étude a pour but d'évaluer l'effet du veuvage et du divorce après l'âge de 55 ans sur le taux de remplacement du revenu durant la retraite. |
| Keywords: | Aînés, Travail, Salaires, traitements et autres gains, Revenu, pension et patrimoine |
| Date: | 2012–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3f:2012343f&r=age |
| By: | Virginia Zarulli (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Investigating the effect of mortality shocks on humans is difficult in the absence of laboratory experiments. However, some events in human history serve as natural experiments. Using data for Australian prisoners during WWII and for the Ukrainian Famine in 1933, I analyzed the effect of sudden changes in external conditions on the rate of aging. This may help to decide whether the rate of aging is sensitive to the environment or is stable. The mortality of the prisoners of war was higher during the imprisonment but the slope of the curve did not change. During the Ukrainian Famine, the curves in the years of crisis converged at old ages. By adopting a cohort perspective I found evidence of selection that could be the cause of the convergence. The analysis suggests that sudden and transitory exposure to severe conditions shifts the mortality curve upward proportionally at all ages, leaving the rate of aging unchanged. |
| JEL: | J1 Z0 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2012-019&r=age |
| By: | Karner, Anne M.; Dorfman, Jeffrey H. |
| Abstract: | After a lifetime of working and saving, retirement is a time that an individual can participate in aspirations and activities that were difficult to explore under the constraints of family rearing and full time employment. This newfound freedom allows one to act on her true preferences and alter her lifestyle. One such example is in location decisions. When examining the drivers of migration for retirees versus people still in the work force, one finds that the drivers for the two groups are not synonymous. For those in the labor force, the weight of locational attributes in decision making can be second best to employment opportunities. However, incomes of retirees are often invariant of their location decisions, and their migration decisions are decoupled from job market conditions. Retirees can indulge in specific tastes and preferences such as a preference for natural amenities or access to health care services. This paper examines the question of which attribute is more important when a retiree migrant is deciding between easy medical access versus possibly secluded natural amenities. Retirees appear to consider both attributes, with natural amenities appearing more important drivers of migration decisions. |
| Keywords: | health care access, migration, natural amenities, retirees, Environmental Economics and Policy, Health Economics and Policy, I11, J11, J18, |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124606&r=age |
| By: | Yen, Steven T.; Kasteridis, Panagiotis; Riley, John B. |
| Abstract: | This study investigates the differentiated effects of economic and socio-demographic variables on food away from home (FAFH) expenditures by type of facility among elderly households in the United States. Using data from the 2008–2010 Consumer Expenditure Surveys, the systems of expenditures on full-service, fast food, and other restaurants are estimated with a multivariate sample selection estimator which also accommodates heteroscedasticity in the error distribution. Statistical significance of error correlations among equations justifies estimation of the sample selection systems. Income, employment statuses, race, education, geographic region, and household composition are important determinants of FAFH expenditures. Income contributes to full-service and fast-food expenditures by the elderly implying that the future of FAFH industry is tied to macroeconomic conditions. Better education is associated with greater probabilities and larger levels of expenditures at all facilities. Effects of the Supplemental Nutrition Assistance Program (SNAP) are found to be strong and negative, invalidating policy concerns for the general population that participation in the program might enhance consumption of less healthy FAFH. |
| Keywords: | Censoring ⋅ equivalence scale ⋅ elderly ⋅ food away from home ⋅ sample selection system, Consumer/Household Economics, D12, Q13, C31, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea12:124981&r=age |