Martin Spielauer , Thomas Horvath , Marian Fink , Gemma Abio , Guadalupe Souto , Ció Patxot , Tanja Istenič
{"title":"The effect of educational expansion and family change on the sustainability of public and private transfers","authors":"Martin Spielauer , Thomas Horvath , Marian Fink , Gemma Abio , Guadalupe Souto , Ció Patxot , Tanja Istenič","doi":"10.1016/j.jeoa.2023.100455","DOIUrl":"10.1016/j.jeoa.2023.100455","url":null,"abstract":"<div><p>This paper examines the impact of aging and related socio-economic trends (educational expansion and changes in family structure) on the sustainability of public and private transfers. For this purpose, recently available disaggregated National Transfer Accounts (NTA) are combined with dynamic microsimulation techniques to build the first dynamic microsimulation model that incorporates NTA accounting (microWELT) and is thus able to capture how agents rely on public and private transfers over their lifecycle. The model simulates the major lifetime transitions at the individual level, including education, emancipation, fertility, partnership formation and dissolution, and death. The analysis was conducted for four European countries, representative of four welfare models: Austria, Finland, Spain, and the UK. We compare sustainability indicators for the economy, the public sector, and families in the NTA tradition with enriched indicators that capture additional composition effects. When these additional composition effects are ignored, as in previous literature, we find that the Economic Support Ratio decreases more than the pure Demographic Support Ratio. In striking contrast, we show that composition effects due to educational expansion that interact with changes in family structures lead to the opposite result, alleviating the effects of demographic aging. Unlike public transfers, private transfers are only slightly affected by aging, as they are near zero for the elderly.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"25 ","pages":"Article 100455"},"PeriodicalIF":2.2,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47640839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Judith Bom , Pieter Bakx , Eddy van Doorslaer , Mette Gørtz , Jonathan Skinner
{"title":"What explains different rates of nursing home admissions? Comparing the United States to Denmark and the Netherlands","authors":"Judith Bom , Pieter Bakx , Eddy van Doorslaer , Mette Gørtz , Jonathan Skinner","doi":"10.1016/j.jeoa.2023.100456","DOIUrl":"10.1016/j.jeoa.2023.100456","url":null,"abstract":"<div><p>The share of older adults residing in a nursing home is much higher in the Netherlands and Denmark than in the US, while in the US, perhaps surprisingly, individuals are much more likely to be admitted to a nursing home. We explore reasons for the higher US admission rates and aim to understand to what extent these differences are due to (i) differences in the composition of the population aged 65+ or (ii) differences in LTC system features.</p><p>We use data from HRS and SHARE merged to administrative data to compare total nursing home admission rates and long-term nursing home admission rates in The Netherlands (N = 1,800) and Denmark (N = 1,859), with comparable rates from the US (N = 6,553). We use decomposition techniques to quantify the differences in determinants of nursing home admissions.</p><p>We find that elders in the US are more likely to be disabled, but even after adjusting for disability, they are more likely to be admitted to a nursing home. Because nearly half of these stays in the US are for fewer than 20 days, there is a shorter average length of stay; by contrast in the Netherlands and Denmark nursing home admissions are generally much longer term. These findings indicate that nursing home admissions are not solely determined by personal characteristics; also system and cultural differences are important reasons why nursing home use varies across countries.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"25 ","pages":"Article 100456"},"PeriodicalIF":2.2,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41764023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Understanding the effects of widowhood on health in China: Mechanisms and heterogeneity","authors":"Qin Li , James P. Smith , Yaohui Zhao","doi":"10.1016/j.jeoa.2023.100458","DOIUrl":"10.1016/j.jeoa.2023.100458","url":null,"abstract":"<div><p>This paper analyzes the impact of widowhood on the health of mid-aged and older individuals in China using data from the China Health and Retirement Longitudinal Study (CHARLS) data. Our results show that widowhood significantly increases the risk of depression, chronic diseases, and body pain while reducing cognitive function, sleeping time, and daily activity functions. The effects on depression and daily functions are immediate, that on chronic diseases is lagged, and the effects on cognitive function and sleeping hours persist over time. We find that rural widows are particularly vulnerable to negative health outcomes due to their weaker economic positions, for whom widowhood leads to more grandchild care responsibility and corresponding workforce and social withdrawals. Moreover, rural widows’ income loss is not compensated by children, either by co-residence or financial transfers, leading to reduced living standards. Overall, our findings suggest that China needs to strengthen economic security for older people, especially among rural women, in order to avoid significant negative consequences of widowhood.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"25 ","pages":"Article 100458"},"PeriodicalIF":2.2,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10306321/pdf/","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"9744558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Frailty and Socioeconomic Stratification in Brazil, India, and China","authors":"B. Seligman, Arunika Agarwal, David E. Bloom","doi":"10.1016/j.jeoa.2023.100457","DOIUrl":"https://doi.org/10.1016/j.jeoa.2023.100457","url":null,"abstract":"","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"1 1","pages":""},"PeriodicalIF":2.2,"publicationDate":"2023-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"54858297","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Demand for older workers: What do we know? What do we need to learn?","authors":"Steven G. Allen","doi":"10.1016/j.jeoa.2022.100414","DOIUrl":"https://doi.org/10.1016/j.jeoa.2022.100414","url":null,"abstract":"<div><p><span>The employment rate for workers 55 and over has been increasing across the world for the last two decades. This creates opportunities for employers to diversify their workforce and retain valuable knowledge and skills, while at the same time posing the challenges of rising labor costs<span> and blocked opportunities for younger workers. This study summarizes the economic tradeoffs facing organizations as they design their optimal age structure, along with recent research on how older workers fit into organizations. Empirical studies show that whereas wage and benefit costs increase with age, there is no conclusive evidence that productivity increases as well. Studies using macroeconomic data find no evidence that older workers block opportunities for younger workers, whereas recent papers using a more disaggregated approach find mixed results. A key challenge facing older workers is the decline over the last 20 years in the odds of becoming a new hire. Although the turnover rate for older workers is much lower than for other age groups, employers have concerns about accommodating their </span></span>work environment<span> and work schedule preferences. Resume studies show age discrimination also plays a factor, especially for women. The paper concludes with suggestions for future research, including interindustry and international comparisons of microeconomic data on employment by age group and re-examining matched employee-employer data sets.</span></p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"24 ","pages":"Article 100414"},"PeriodicalIF":2.2,"publicationDate":"2023-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50171188","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bernhard Hammer , Michael Christl , Silvia De Poli
{"title":"Public redistribution in Europe: Between generations or income groups?","authors":"Bernhard Hammer , Michael Christl , Silvia De Poli","doi":"10.1016/j.jeoa.2022.100426","DOIUrl":"https://doi.org/10.1016/j.jeoa.2022.100426","url":null,"abstract":"<div><p>Governments face a potential trade-off between provision for the population in retirement and the support of working-age households with low income. Using EUROMOD-based microdata from 28 countries, we quantify public redistribution to pensioner- and working-age households, distinguishing also by income quartiles. In general, Northern European countries are characterized by a low net redistribution between households, limited public pensions, but a strong support of low-income households. By contrast, most Southern European countries are characterized by a high net redistribution to pensioners, offering generous benefits to some, but little support for working age households with low income. Our results show that a strong public net redistribution between households is associated with generous public benefits for a portion of the retirees, but negatively related to support for the population with low income.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"24 ","pages":"Article 100426"},"PeriodicalIF":2.2,"publicationDate":"2023-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50171189","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Population age structure and secular stagnation: Evidence from long run data","authors":"Joseph Kopecky","doi":"10.1016/j.jeoa.2023.100442","DOIUrl":"10.1016/j.jeoa.2023.100442","url":null,"abstract":"<div><p>A large literature has reopened the secular stagnation hypothesis, first proposed near the end of the great depression as a warning for anemic growth resulting from long run trends in population aging. In this paper, I explore the relationship between population age structure and growth in: investment, consumption and output, in a long run panel of advanced economies. The evidence is largely consistent with proposed channels for secular stagnation. Investment growth, in its level and as a fraction of GDP, appears much stronger in young populations, while facing demographic headwinds in older economies. Consumption and output growth are positively associated with late career workers, with a negative relationship coming from both young and old dependents. Consistent with the recent secular stagnation literature, interest rate channels appear to have strong interactions with population age structures. I find that for investment and output growth, estimated impacts of age-structure are more pronounced in low interest rate environments, with high rates mitigating some of their effect.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"24 ","pages":"Article 100442"},"PeriodicalIF":2.2,"publicationDate":"2023-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48111599","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Working longer and population aging in the U.S.: Why delayed retirement isn’t a practical solution for many","authors":"Lisa F. Berkman , Beth C. Truesdale","doi":"10.1016/j.jeoa.2022.100438","DOIUrl":"10.1016/j.jeoa.2022.100438","url":null,"abstract":"<div><p>We argue that if the United States wants to make delayed retirement a healthy reality in the future, policymakers must level the social and economic playing field for young and middle-aged workers. As it stands, precarious working conditions, family caregiving responsibilities, poor health, and age discrimination make it difficult or impossible for many<!--> <!-->to<!--> <!-->work into their late 60s and beyond. Investments in better jobs today could lead to more secure retirements tomorrow. At the same time, we need a renovation of America’s retirement and disability systems to provide financial security for all Americans as they age. Our findings suggest that working longer is set in motion long before one’s 60s; it is structured by a life course history of working steadily through one’s 50s. We argue that policies affecting work and policies affecting retirement are two sides of the same coin and must be considered together.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"24 ","pages":"Article 100438"},"PeriodicalIF":2.2,"publicationDate":"2023-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42676056","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does financial education affect retirement savings?","authors":"Melody Harvey , Carly Urban","doi":"10.1016/j.jeoa.2023.100446","DOIUrl":"10.1016/j.jeoa.2023.100446","url":null,"abstract":"<div><p>Since individuals are increasingly required to manage their own retirement portfolios, policy levers that increase retirement planning and saving have become increasingly important. We use variation in timing and presence of state-required personal finance coursework in high schools to estimate the effect of the financial education coursework on the likelihood of holding and amount in retirement accounts in adulthood (ages 25–40). Our results show no definitive increases in account ownership, non-retirement investment accounts, or homeownership. Since prior work finds required high school financial education improves credit and debt outcomes, we recommend that states and educators prioritize content that is more immediately relevant for 18-year-olds, such as budgeting, long-term debt, and credit.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"24 ","pages":"Article 100446"},"PeriodicalIF":2.2,"publicationDate":"2023-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45112716","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The economics of longevity – An introduction","authors":"Andrew J. Scott","doi":"10.1016/j.jeoa.2022.100439","DOIUrl":"10.1016/j.jeoa.2022.100439","url":null,"abstract":"<div><p>Global life expectancy now stands at 71 years compared with 30 years in 1870. This fact increases the need to understand how we age and how that impacts our economic decision making. It also raises the issue of how we should change our life cycle behaviours, policies and institutions to adapt to these longer lives. The combination of these two factors leads to a very different focus from the traditional interest of an ageing society and its focus on changes in the age distribution of society. It emphasises the need to understand a longevity society and changes in how we age. Given the importance of intertemporal decision making and the life cycle model in economics the implications of longevity for economic research offers rich pickings across a range of areas covering health, human capital, employment, financial decisions and macroeconomics. Understanding the changes in how we age in response to longer lives and identifying the channels to ensure that longer lives are welfare enhancing should be a fruitful and important area for research.</p></div>","PeriodicalId":45848,"journal":{"name":"Journal of the Economics of Ageing","volume":"24 ","pages":"Article 100439"},"PeriodicalIF":2.2,"publicationDate":"2023-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46872350","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}