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| By: | M. Baldini; C. Mazzaferro; P. Onofri |
| Abstract: | We use 6 waves of the Bank of Italy’s Survey on household income and wealth (SHIW) to check the evolution of workers’ expectations on future pension benefits and retirement age from 2000 to 2012. Based on these two subjective evaluations, we compute a measure of expected pension benefit and compare it with a “true” measure of the same variable that we estimate on the basis of the pension rules in each year of the considered time lapse. By comparing subjective and “true” measures of the variable, we are able to measure the evolution over time of the “expectation error” and its distribution among different economic and demographic subsets of the population. Finally, we estimate a subjective measure of social security wealth and the degree of substitution between this variable and the private net worth of workers’ households, in order to quantify the effects of pension reforms approved in the period considered on wealth accumulation. |
| JEL: | H55 D91 E21 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp1007&r=age |
| By: | William B.P. Robson; Alexandre Laurin |
| Keywords: | Retirement Income and Saving; Pensions |
| JEL: | H55 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:208&r=age |
| By: | Abigail McKnight |
| Abstract: | It is well established that on average disabled people and the households in which they live face greater financial disadvantage in terms of income than their counterparts. What is less well understood is how they fare in terms of their wealth status. In this paper we use data from two large scale social surveys to examine the relationship between disability status and household wealth holdings. We find that overall disabled people have substantially lower household wealth and all components of wealth (property, financial, pension, physical) than non-disabled people but even these average differences mask important lifecycle patterns. The incidence of disability increases with age and the effect of this is that disabled people are on average older than non-disabled people. As wealth accumulation also increases with age up to retirement the effect is that average differences understate the true disability wealth-penalty. People who experience disability later in life have been in a stronger position to accumulate assets over their working lives than people who experience disability over the crucial wealth-accumulation stage (35-64 years) of the lifecycle. The full extent of the disability wealth-penalty can only be observed by looking at age or lifecycle profiles. We find evidence of cumulative disadvantage related to disability longevity and cumulative advantage to remaining disability free. Part of the disability wealth-penalty can be accounted for by lower average levels of education among disabled people and by their lower position in the socio-economic classification (NS-SEC) reflecting lower profiles of lifetime earnings and household income. The evidence points to a situation where disabled people have been unable to save and accumulate assets to anything like the extent of their non-disabled peers most likely through lower long term income and extra costs associated with disability. This puts them at a disadvantage in terms of being able to draw on an asset in times of need when expenditure needs exceed current levels of income, lower pension wealth on entering retirement and less likely to be in a position to benefit from the 'asset-effect' and more generally is a matter of concern in terms of equality and social mobility. |
| Keywords: | wealth, disability, inequality, lifecycle |
| JEL: | D31 D63 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticas:case181&r=age |
| By: | Marcin Bielecki (Faculty of Economic Sciences, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland); Krzysztof Makarski (National Bank of Poland; Warsaw School of Economics); Marcin Waniek (University of Warsaw) |
| Abstract: | While the inequalities of endowments are widely recognized as areas of policy intervention, the dispersion in preferences may also imply inequalities of outcomes. In this paper, we analyze the inequalities in an OLG model with obligatory pension systems. We model both policy relevant pension systems (a defined benefit system -- DB -- and a transition from a DB to a defined contribution system, DC). We introduce within cohort heterogeneity of endowments (individual productivities) and heterogeneity of preferences (preference for leisure and time preference). We introduce two policy instruments, which are widely used: a contribution cap and a minimum pension. In theory these instruments affect both the incentives to work and the incentives to save for the retirement with different strength and via different channels, but the actual effect attributable to these policy instruments cannot be judged in an environment with a single representative agent. We show four main results. First, longevity increases aggregate consumption inequalities substantially in both pension systems, whereas the effect of a pension system reform works to reinforce the consumption inequalities and reduce the wealth inequalities. Second, the contribution cap has negligible effect on inequalities, but the role for minimum pension benefit guarantee is more pronounced. Third, the reduction in inequalities due to minimum pension benefit guarantee is achieved with virtually no effect on capital accumulation. Finally, the minimum pension benefit guarantee addresses mostly the inequalities which stem from differentiated endowments and not those that stem from differentiated preferences. |
| Keywords: | inequality, longevity, defined contribution, defined benefit, Gini |
| JEL: | C68 E17 E21 J11 J26 H55 D63 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2015-16&r=age |
| By: | David Card (University of California-Berkeley); Nicole Maestas (RAND); Patrick Purcell (Social Security Administration) |
| Abstract: | Many job-losers suffer large and persistent losses in earnings capacity. For displaced workers who are age-eligible, one reaction to these losses is to begin claiming Social Security retirement benefits. We use administrative earnings records from the Social Security Administration’s Continuous Work History Sample to study the impacts of labor market shocks among workers in their late 50’s and early 60’s on Social Security retirement benefit claiming rates. We find that labor market shocks lead to current and future increases in the fraction of insured workers who initiate Social Security benefits at the earliest possible claiming age. Moreover, once they initiate benefits, early claimants continue to have low levels of earnings in all subsequent years. |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:mrr:papers:wp317&r=age |
| By: | Aggarwal, Raj (University of Akron); Goodell, John (University of Akron) |
| Abstract: | Estimated expected returns are important for pension plans, as they influence many plan characteristics including required asset levels, annual contributions, and the extent of plan under- or overfunding. Yet, there seems to be little prior literature on the factors influencing these estimated future returns. In an attempt to fill this gap, this paper presents the results of a panel analysis of data on the determinants of such returns used by US public defined-benefit (DB) pension plans for the period 2001–2011. As expected, we find that real return estimates by DB public pension funds are positively related to fund size, fund age, international asset diversification, state income, and corruption levels. However, more interestingly and importantly, we document that real return estimates by public US DB pension funds are positively related to cultural measures of individualism and masculinity, and negatively related to uncertainty avoidance. These results should be of much interest not only to scholars and pension benefi ciaries, but also to fund managers, other capital market participants, and policymakers. |
| Keywords: | public pensions; defined benefit pensions; estimated returns; public policy; pension underfunding; finance and culture |
| JEL: | H3 H4 H6 I00 J3 |
| Date: | 2015–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwp:1508&r=age |
| By: | KOMURA Mizuki; OGAWA Hikaru |
| Abstract: | Previous studies have shown that the older sibling often chooses to live away from his elderly parents with the aim of free-riding on the care provided by the younger sibling. In the presented model, we incorporate income effects to depict the alternative pattern frequently observed in Eastern countries, namely that the older sibling lives near his or her parents and cares for them in old age. By generalizing the existing model, we show the three cases of the elderly parents being looked after by (1) the older sibling, (2) the younger sibling, and (3) both siblings, in accordance with the relative magnitude of the income effect and the strategic incentive for one sibling to free-ride on the other. Our study also investigates the effect of changes in relative incomes on the level of total care received by their parents. We find that the overall care provided by both children increases as their aggregate income rises, but that at some point, this may be reduced because of the incentive to free-ride. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15062&r=age |
| By: | Bernd Genser (Department of Economics, University of Konstanz, Germany) |
| Keywords: | income tax reform, taxation of pensions, deferred income taxation |
| JEL: | H2 H24 H55 |
| Date: | 2015–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:knz:dpteco:1513&r=age |
| By: | Jessica Standish-White (Graduate student at the University of Oxford); Arden Finn (Doctoral student and researcher at the Southern Africa Labour and Development Unit, University of Cape Town) |
| Abstract: | We use longitudinal data from three waves of South Africa's National Income Dynamics Study to estimate the effect of pension receipt in the household on children's educational outcomes in South Africa. We find that children who co-reside with a pensioner achieve better educational outcomes than those who do not, while controlling for a wide number of individual and household characteristics. In particular, we find that the sex of the pension recipient matters - the positive impact on a child's progression through school is greater if a female, rather than a male, receives the pension.We explore some of the possible mechanisms behind this, including differential school absenteeism rates and differential spending on non-fee schooling expenses. |
| Keywords: | Social grants, education, South Africa |
| JEL: | H55 I38 D13 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:147&r=age |
| By: | Jesus Crespo Cuaresma; Peter Huber; Anna Raggl |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfepbr:y:2015:m:3:d:0:i:7&r=age |
| By: | Jordi Caballé; Ana I. Moro-Egido |
| Abstract: | We analyze the effects of the introduction of aspirations both on the pattern of wealth accumulation along the life cycle of individuals displaying a "joy-of-giving" motive for bequests and on the evolution of wealth within a dynasty. We will show that the introduction of aspirations at different ages display different effects on the amount of saving of workers. However, both adult and old aspirations dampen the positive effect on wealth accumulation brought about by warm-glow altruism. Therefore, under aspirations, both bequest motivated and non-bequest motivated individuals will behave more similarly than when they do not exhibit aspirational concerns. We also show that the introduction of aspirations raises the speed of convergence to the dynastic steady state when there exist a bequest motive. However, when this motive is absent, aspirations lower the speed of convergence. |
| Keywords: | aspirations, saving, bequests |
| JEL: | E21 D91 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:826&r=age |
| By: | Yonatan Ben-Shalom; David C. Stapleton |
| Abstract: | The predictive performance of the regression-based models is better than that of the individual claims-based indicators. At a predicted probability threshold chosen to maximize the sum of sensitivity and specificity, sensitivity is 0.72 for beneficiaries age 65 or older and specificity is 0.65. For those under 65, sensitivity is 0.54 and specificity is 0.67. The findings also suggest ways to improve predictive performance for specific disability populations of interest to researchers. |
| Keywords: | Self-reported disability, Medicare, claims-based algorithms, receiver operating characteristic (ROC) curves |
| JEL: | I J |
| Date: | 2015–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:dfdf0c142bbb4ecd972e630dc3b6eca7&r=age |
| By: | Renate Lange; Jörg Schiller; Petra Steinorth |
| Abstract: | This paper empirically assesses the selection effects and determinants of the demand for supple-mental health insurance that covers hospital and dental benefits in Germany. Our representative dataset provides doctor-diagnosed indicators of the individual’s health status, risk attitude, demand for medical services and insurance purchases in other lines of insurance as well as rich demographic and socioeconomic information. Controlling for a wide range of individual preferences, we find evidence of adverse selection for individuals aged 65 and younger for hospital coverage despite initial individual underwriting by insurers. The reverse is true for individuals older than 65; individuals with supplemental hospital coverage are healthier on average. In addition, insurance affinity and income are the most important drivers of the demand for both types of coverage. |
| Keywords: | Supplemental health insurance, adverse selection, insurance demand, German Statutory Health Insurance, insurance affinity |
| JEL: | D82 G22 I11 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp757&r=age |
| By: | Cherrie Bucknor |
| Abstract: | Most economists would agree that, on average, workers who are older and better educated should earn higher wages than younger workers with less education. This is because older workers usually have more work experience and on-the-job training, leading to more skills. Similarly, each additional year of education leads to an increase in workers' skills. These increases in skills, whether through education or work experience, should in theory be rewarded in the labor market with higher wages. However, this has not been the case for low-wage workers. The minimum wage reached its peak value in 1968, when it was equal to $9.54 in inflation-adjusted 2014 dollars.1 Since then, the value of the minimum wage has continued to erode, and currently sits at $7.25. This has happened despite the fact that low-wage workers today are older and better educated than low-wage workers of the past. |
| Keywords: | low-wage workers, wages, low-wages, minimum wage, economics |
| JEL: | J J3 J30 J38 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2015-13&r=age |
| By: | Polly Vizard |
| Abstract: | This project was commissioned by HelpAge International as a basis for broader efforts to develop an indicator-based system for monitoring older people's human rights in different countries across the world. The project has three key aims, 1) to develop an indicator-based system for monitoring older people's human rights, based on the good practice model published by the Office of the High Commissioner for Human Rights (OHCHR). 2) to develop a social survey instrument that can be used to build up evidence against the indicators on a country by country basis. 3) to present findings based on the survey data for Peru, Mozambique and Kyrgyzstan. A particular priority has been to address existing research and evidence gaps by extending knowledge and understanding of the outcomes of older people across a range of critical areas of life (or "domains"), including in relation to multidimensional deprivation, discrimination, neglect, maltreatment and abuse. Internationally, there is also a paucity of data on older people's outcomes that is disaggregated by narrow age band and by characteristics such as gender, disability status, ethnic group and area type (urban / rural). Another key priority has been to begin to build up an evidence base of disaggregated data of this type. In this research report, we set out the indicator-based system that has been developed to meet these aims (the HelpAge panel on the human rights of older people) together with details of the social survey instrument that has been developed in order to build up an evidence base against the indicators (the HelpAge survey on the human rights of older people). The survey was fielded in Peru, Mozambique and Kyrgyzstan during the course of 2012 and key findings based on the survey for these countries are also reported. |
| Keywords: | Human rights, older people, multidimensional deprivation, neglect, abuse, discrimination, Peru, Mozambique, Kyrgyzstan, HelpAge International, violence, dignity, participation, standard of living, |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticar:casereport78&r=age |
| By: | Ramon Sabes-Figuera (European Commission – JRC - IPTS) |
| Abstract: | The ultimate objective of the SIMPHS research is to provide an understanding of the role of ICT in facilitating integrated health and social care. Therefore, a key aspect to be considered is how these technological elements (e.g. devices, platforms, medical records systems) are procured within European health and social care systems and to explore the benefits of innovative approaches to this process. Indeed, the fact that the public sector is by far the largest buyer and consumer of health care products and services in Europe creates an opportunity for using procurement process of ICT on a strategic level. The European Commission is behind several ongoing initiatives and is planning further ones with the aim to foster the use of innovative public procurement tools in the healthcare field and specifically in relation to innovative technologies . This is why it was deemed relevant in the context of the SIMPHS3 research to explore public procurement experiences and try to draw lessons from innovative public procurement initiatives in the healthcare field. We identified the initiatives currently developed in this area by the regional government of Galicia (Spain) as particularly relevant not only because of their comprehensive and ambitious scope, but also because of the highly innovative approach that has been developed and implemented in that region. In addition, as the Galician project makes use of different procurement tools, it allows us to present findings that may be relevant for a wider spectrum of stakeholders and experiences. |
| Keywords: | SIMPHS, eHealth, Remote Monitoring, ageing, integrated care, independent living, case studies, facilitators, governance, impact, drivers, barriers, integration, organisation |
| JEL: | I11 I18 O33 O38 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc94502&r=age |
| By: | Jean Bousquet (CHRU Montpellier); Jacques Mercier (CHRU Montpellier); Antoine Avignon (CHRU Montpellier); Rodolphe Bourret (CHRU Montpellier); Thierry Camuzat (Region Languedoc-Roussillon) |
| Abstract: | The MACVIA-LR integrated care approach deployed in the Languedoc-Roussillon region in the South of France rests on three main initiatives that put particular emphasis on the prevention of unhealthy ageing of patients suffering from chronic conditions by implementing a series of actions that range from the early diagnosis and management of chronic respiratory diseases to the detection of un-recognised co-morbidities. The initiatives form part of a set of activities as a reference site for the European Innovation Partnership on Active and Healthy Ageing initiative in the Languedoc-Roussillon region and comprise: Integrated care pathways for airway diseases (AIRWAYS ICPs); Allergic Rhinitis and its Impact on Asthma (ARIA); and the Co-morbidity Clinics. |
| Keywords: | SIMPHS, eHealth, Remote Monitoring, ageing, integrated care, independent living, case studies, facilitators, governance, impact, drivers, barriers, integration, organisation |
| JEL: | I11 I18 O33 O38 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc94487&r=age |
| By: | Francisco Lupiañez-Villanueva (Open Evidence); Alexandra Theben (Open Evidence) |
| Abstract: | The Community Assessment of Risk Assessment and Treatment Strategy (CARTS) programme is defined by the investigators as a risk intervention strategy that aims to screen, triage, assess and treat to reduce the risk of frailty and three adverse outcomes (AO) - institutionalisation, hospitalisation and death - in community dwelling older adults. The programme uses two instruments, Risk Instrument for Screening in the Community (RISC) and the Community Assessment of Risk Instrument (CARI). The RISC screens individuals to identify concerns in three domains, mental state, activities of daily living (ADLs) and medical state. The RISC then triages people into low, medium and high risk and describes the factors that are causing risk. The CARI is a more comprehensive assessment tool which also aims to identify the factors that create risk. The programme has been developed by researchers at the Centre for Gerontology and Rehabilitation in University College Cork. |
| Keywords: | SIMPHS, eHealth, Remote Monitoring, ageing, integrated care, independent living, case studies, facilitators, governance, impact, drivers, barriers, integration, organisation |
| JEL: | I11 I18 O33 O38 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc94499&r=age |
| By: | Ignacio Peinado (Hospital Universitario de Getafe); Elena Villalba (Hospital Universitario de Getafe); Francisco José Mansoa (Hospital Universitario de Getafe); Alberto Sánchez (Hospital Universitario de Getafe) |
| Abstract: | In 2010, the Austrian Social Insurance Institution for Railways and Mining Industry (Versicherungsanstalt für Eisenbahnen und Bergbau, VAEB) started a proof-of-concept diabetes telemonitoring project called DiabMemory, as part of a wider programme called "Health Dialogue" (“Gesundheitsdialog”). DiabMemory allows diabetes patients to track health parameters using a mobile phone and share this data with their General Practitioner (GP). After being diagnosed with type 1 or 2 diabetes in primary or secondary care, patients insured by VAEB are given the opportunity to stay for a period of one to three weeks at a special rehabilitation facility in Breitenstein (Lower Austria) to receive education on all aspects relevant to their health and medical conditions like nutrition, physical activity, and psychological aspects. If they decide to join the programme, they receive the equipment and training on how to use the DiabMemory system and how to integrate it into their everyday lives. After their stay in Breitenstein, participants are able to use DiabMemory without further help. A web-based application allows health professionals responsible for therapy management within the Health Dialogue programme to access patient data and adjust therapy plans when needed. Moreover, they can provide users with motivational messages and feedback can be sent directly to the patient’s mobile. |
| Keywords: | SIMPHS, eHealth, Remote Monitoring, ageing, integrated care, independent living, case studies, facilitators, governance, impact, drivers, barriers, integration, organisation |
| JEL: | I11 I18 O33 O38 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc95122&r=age |