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on Economics of Ageing |
| By: | Javier Olivera (Luxembourg Institute of Socio-Economics Inequality (LISER)); Yadiraah Iparraguirre (Pontificia Universidad Catolica del Peru (PUCP)) |
| Abstract: | This paper studies the gender pension savings gap in a system based on individual retirement accounts (IRA). We exploit randomly selected samples of individual administrative pension fund records in Peru, collected between 2005 and 2019. The results show a gender gap in favor of men at each percentile of the distribution of pension funds. The unconditional gender gap decreases along the percentiles until it reaches a form of “glass ceiling†, and then increases substantially. Older cohorts show larger gender gaps in pension savings because of the capitalization process. Importantly, we find that awareness about pension fund risk management—used as a proxy for financial literacy—increases the dispersion of pension savings over the distribution, therefore increasing inequality and the gender gap. This situation is aggravated by the fact that Peru has very low levels of financial literacy. Our results could be useful to other countries with IRA systems, or countries that are considering increasing the relative importance of these systems in their pension models. These systems are conceived to improve the incentive alignment between individual contributions, labor supply and retirement savings, but one danger is that of exacerbating gender pension gaps. |
| Keywords: | Gender gap, Pension savings, Financial literacy, Unconditional quantile, Peru |
| JEL: | D31 G23 J16 J32 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:inq:inqwps:ecineq2022-624&r= |
| By: | Julián Díaz-Saavedra; Ramon Marimon; João Brogueira de Sousa |
| Abstract: | Facing an ageing population and historical trends of low employment rates, pay-as-you-go (PAYG) pension systems, currently in place in several European countries, imply very large economic and welfare costs in the coming decades. In an overlapping generations economy with incomplete insurance markets and frictional labour markets, an employment fund, which can be used while unemployed or retired, can enhance production efficiency and social welfare. With an appropriate design, the sustainable Backpack employment fund (BP) can greatly outperform -measured by average social welfare in the economy- existing pay-as-you go systems and also Pareto dominate a full privatization of the pension system, as well as a standard fully funded defined contribution pension system. We show this in a calibrated model of the Spanish economy, by comparing the effect of its ageing transition under these different pension systems and by showing how a front-loaded reform-transition, from the PAYG to the BP system can be Pareto improving, while minimizing the cost of the reform. |
| Keywords: | social security reform, ageing, taxation, debt |
| JEL: | C68 H55 J26 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1362&r= |
| By: | Tomaz Cajner; Javier Fernández-Blanco; Virginia Sánchez-Marcos |
| Abstract: | Using micro data from the CPS and the HRS, we document changes in labor force participation at older ages in the U.S. since the mid 1990s. Our main finding is that the over two-decade increase in participation is solely driven by individuals in good health, and does not differ across either educational or occupational groups. This phenomenon may importantly affect the results of social security reforms aiming at rising the mandatory retirement age, and may exacerbate the health gap in lifetime earnings. |
| Keywords: | labor force participation, old ages, health |
| JEL: | J22 I14 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1298&r= |
| By: | Matthew J. Baker (Hunter College); Joyce P. Jacobsen (Hobart and William Smith Colleges) |
| Abstract: | We discuss the interrelationship between treatment of the elderly, production technology, technological progress, and transmission of culture using a model in which respect for the elderly is endogenous. We focus our analysis on the relative well-being of the elderly, and employ the model to explain cross-societal patterns in the relative well-being of the elderly, encompassing hunter-gatherer, subsistence agriculture, and modern, fully-developed societies. One result is that the cultivation of culture and norms for respect for the elderly bears a nonlinear relationship with the level of development and other fundamental features of the economy, such as the degree to which property rights are defined. We discuss how the elderly might be impacted by modern demographic, technological, and policy changes in both developing and developed economies. |
| Keywords: | Elderly Treatment, Social Security, Gift-Giving, Inter Vivos Transfers, Economic Growth |
| JEL: | J14 D13 D14 D15 O41 O42 O43 P51 J11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:htr:hcecon:452&r= |
| By: | Raquel Fonseca (ESG-Université du Québec à Montréal & CIRANO.); Hugo Morin (ESG-Université du Québec à Montréal and HRSDC.); Ana I. Moro-Egido (Department of Economic Theory and Economic History, University of Granada.) |
| Abstract: | This paper investigates the bi-directional causal relationship between retirement and stress. We use PSID data for the period 2007-2015. Using a simultaneous equations approach, we find that a rise in stress increases the probability to retire by roughly 49.8 percentage points, while retirement decreases stress by 23.1 percentage points. We find the same results when we disaggregate by individuals’ characteristics such as gender, occupation, wealth and ethnicity. We show that official retirement ages are a strong instrument for actual retirement age, and that lagged physical activity levels are a non-linear instrument for perceived stress. We also confirm that objective measures of mental health are a strong instrument for perceived stress. Our result is especially interesting in terms of policy, and further research should be done to analyse the effects of physical activity on economic and well-being variables at older ages. |
| Keywords: | Stress, retirement, physical activity, simultaneous equation models. |
| JEL: | C30 I10 I12 J26 |
| Date: | 2022–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:gra:wpaper:22/14&r= |
| By: | Rother,Friederike Uta; Chartouni,Carole; Sanchez-Reaza,Javier; Brodersohn Ostrovich,Ernesto Ariel; Pallares-Miralles,Montserrat |
| Abstract: | This paper proposes a framework of voluntary savings schemes (VSS) in Jordan that cancomplement the current formal sector arrangements to better protect informal workers against economic shocks,unemployment, old age, or disability. As benefits of traditional mandatory pension systems worldwide have beencut substantially since the 1990s, voluntary defined contribution schemes are increasingly trying to fill thegap. In many countries, including in low-income countries, special voluntary savings schemes have been introduced toprotect informal workers. Blending the knowledge from best practices internationally with the cluster methodologydeveloped specifically for Jordan, the paper provides an overview of the current system of social security in Jordanand presents policy options to lower informality, extend social protection coverage, and provide more adequateprotection to workers. |
| Date: | 2022–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:hdnspu:170802&r= |
| By: | Alyssa Farha Jasmin; Amanina Abdur Rahman |
| Keywords: | Social Protections and Labor - Employment and Unemployment Social Protections and Labor - Labor Markets Social Protections and Labor - Labor Policies Social Protections and Labor - Pensions & Retirement Systems |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:36170&r= |
| By: | World Bank |
| Keywords: | Social Protections and Labor - Labor Markets Social Protections and Labor - Labor Policies Social Protections and Labor - Pensions & Retirement Systems Social Protections and Labor - Social Funds and Pensions Social Protections and Labor - Social Protections & Assistance |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35695&r= |
| By: | Arapakis, K.; French, E.; Jones, J.; McCauley, J. |
| Abstract: | Dying is expensive in America. Healthcare expenditures from all payors (public and private) total $80,000 in the last 12 months of life and $155,000 in the last 3 years. Although most end-of-life expenses are paid by insurers such as Medicare and Medicaid, the amount households pay out-of-pocket is hardly trivial. Furthermore, some conditions, such as dementia, are not well insured, leaving families with potentially enormous liabilities. In this viewpoint, we discuss the current funding of end-of-life care in the US. We argue that long term care (LTC) expenses are underinsured relative too other types of late in life care, such as hospitals pending and doctor visits. We then discuss potential reforms that would better insure families against catastrophic expenses related to LTC. |
| Keywords: | medical spending, Medicaid, Medicare, long term care, policy reform |
| JEL: | I11 I13 I18 I38 J14 |
| Date: | 2022–08–22 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2249&r= |
| By: | Drydakis, Nick (Anglia Ruskin University); Paraskevopoulou, Anna (Anglia Ruskin University); Bozani, Vasiliki (University of Cyprus) |
| Abstract: | The study examines whether age intersects with gender and race during the initial stage of the hiring process and affects access to vacancies outcomes and wage sorting. In order to answer the research question the study collects data from four simultaneous field experiments in England. The study compares the labour market outcomes of younger White British men with those of older White British men and women, and with those of older Black British men and women. The study concentrates on low-skilled vacancies in hospitality and sales in the private sector. The results of this study indicate that older White British men and women, as well as older Black British men and women, experience occupational access constraints and are sorted into lower-paid jobs than younger White British men. The level of age discrimination is found to be higher for Black British men and women. In addition, Black British women experience the highest level of age discrimination. These patterns may well be in-line with prejudices against racial minority groups and stereotypical sexist beliefs that the physical strengths and job performance of women decline earlier than they do for men. This research presents for the first-time comparisons of access to vacancies and wage sorting between younger male racial majorities and older male racial majorities, older female racial majorities, older male racial minorities, and older female racial minorities. In addition, the driven mechanism of the assigned differences is explored. Because the study has attempted to minimise the negative employer stereotypes vis-à-vis older employees, with respect to their motivation, productivity, and health, such prejudices against older individuals may be considered Taste-based discrimination. If prejudices against older individuals are present, then anti-discrimination legislation may be the appropriate response, especially for racial minorities and women. Eliminating age discrimination in selection requires firms to adopt inclusive HR policies at the earliest stages of the recruitment process. |
| Keywords: | age discrimination, women, racial minorities, intersectionality, access to occupations, wages |
| JEL: | C93 C9 J14 J1 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15567&r= |
| By: | Kremena Bachmann (University of Zurich - Department of Banking and Finance; Zurich University of Applied Sciences); Andre Lot (Norwegian School of Economics and Zurich University of Applied Sciences); Xiaogeng Xu (Hanken School of Economics); Thorsten Hens (University of Zurich - Department of Banking and Finance; Norwegian School of Economics and Business Administration (NHH); Swiss Finance Institute) |
| Abstract: | We adapt the design of five experimental studies on retirement decision-making and conduct reproductions with a larger sample from the broader population. We reproduce most of the main effects of the original studies. In particular, we find that consumption decisions are less efficient when subjects need to borrow from the future than save from the present. When subjects collect retirement benefits as lump-sum instead of annuities, they choose to retire later. The duration of retirement affects the saving behavior of the subjects. Savings are higher when they are incentivized with matching contributions than with tax rebates. When faced with stochastic survival risk, subjects make partial adjustments to spending paths. We also propose a further experimental research agenda in related topics and discuss practical issues on subject recruitment, attrition, and redesign of complex tasks. |
| Keywords: | household finance; retirement decision; savings; annuities; life-cycle optimization; income smoothing; experiments; reproductions |
| JEL: | C91 D15 G51 J26 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2272&r= |
| By: | Manuela Schönmann (Faculty of Computer Science, Technische Hochschule Ingolstadt, Ingolstadt, Germany; TUM School of Social Sciences and Technology, Technical University of Munich, Munich, Germany); Anja Bodenschatz (Faculty of Computer Science, Technische Hochschule Ingolstadt, Ingolstadt, Germany; TUM School of Social Sciences and Technology, Technical University of Munich, Munich, Germany; Seminar for Corporate Development and Business Ethics, Faculty of Management, Economics and Social Sciences, University of Cologne, Cologne, Germany); Matthias Uhl (Faculty of Computer Science, Technische Hochschule Ingolstadt, Ingolstadt, Germany; TUM School of Social Sciences and Technology, Technical University of Munich, Munich, Germany); Gari Walkowitz (Faculty of Business Administration, Technische Universität Bergakademie Freiberg, Freiberg, Germany) |
| Abstract: | The world’s population will continue to age significantly in the near future. One strategy to address the growing gap between supply and demand of professional caregivers in many regions is the use of care robots. Although there have been numerous ethical debates about the use of robots in elderly care, the important question of how (potentially) affected people perceive situations with care robots compared to situations with human caregivers has not yet been systematically examined. Using a large-scale experimental vignette study, we investigated the influence of the nature of the caregiver on participants’ perceived well-being when confronted with different care situations in nursing homes. Our results show that the views of people already affected by care dependency regarding care robots differ substantially from the views of people not affected by care dependency. The non-affected strongly devalued care robots compared to human caregivers, especially in a service context. This devaluation was not found among those affected; their perceived well-being was not influenced by the nature of the caregiver. These findings also proved robust when controlling for people’s attitudes toward robots, gender, and age. |
| Keywords: | Care robots, Elderly nursing care, Robot aversion, Well-being, Vignette experiment |
| JEL: | C83 I12 I31 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:aiw:wpaper:24&r= |
| By: | World Bank |
| Keywords: | Education - Lifelong Learning Health, Nutrition and Population - Demographics Social Protections and Labor - Labor Markets |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35691&r= |
| By: | Elena Glinskaya; Thomas Walker; Thisuri Wanniarachchi |
| Keywords: | Health, Nutrition and Population - Demographics Health, Nutrition and Population - Health Economics & Finance Health, Nutrition and Population - Health Insurance Health, Nutrition and Population - Health and Poverty Social Protections and Labor - Labor Markets Social Protections and Labor - Social Protections & Assistance |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:35693&r= |