Download e-book for kindle: Advances in the Economics of Aging (National Bureau of by David A. Wise

By David A. Wise

This quantity offers cutting edge study on problems with value to the health of older people: hard work industry habit, overall healthiness care, housing and residing preparations, and saving and wealth.Specific subject matters comprise the influence of work industry rigidities at the employment of older employees; the impact on retirement of the supply of continuation assurance merits; and the effect of the possible check approach (PPS) on emerging Medicare charges. additionally thought of are the results of wellbeing and fitness and wealth on residing association judgements; the motivation results of employer-provided pension plans; the measure of substitution among 401(k) plans and different employer-provided retirement saving preparations; and the level to which housing wealth determines how a lot the aged keep and consume.Two ultimate experiences use simulations that describe the results of stylized fiscal versions of habit one of the aged. This well timed quantity can be of curiosity to somebody interested in the economics of getting older.

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This common work pattern of many retirees not only restricts management5 use of this type of employee, but is also symptomatic of the financial disincentive associated with prolonged employment during retirement. I put the emphasis in this quotation to point out that the earnings test may well discourage the development of programs for part-time work: management will often need to ask workers with particular skills to work more than the exempt amount, and if workers consistently refuse, it may not be worth the cost of maintaining such programs.

My calculation based on table 2 in Ruhm 1990a. 5. ’ 6. Quinn (1980) in the RHS and Iams (1987) in the New Beneficiary Survey found similar patterns. 2 Source: Employment and Earnings. January 1991, based on the Current Population Survey. 5 Transitions from Career Jobs (%) Wage and Salary Workers Women All Part-time on career job Part-time on new job Full-time on new job Out of labor force Total Age 65 or over Part-time on career job Part-time on new job Full-time on new job Out of labor force Total 10 10 7 14 I00 1 19 0 74 100 Men 5 10 12 13 I00 8 12 5 14 100 Self-Employed Men 25 13 13 49 100 44 16 0 41 100 Source: Quinn, Burkhauser, and Myers (1990),based on Retirement History Survey.

Men and women who work for a wage or salary had quite similar patterns: they mainly left the labor force; just a small percentage moved to part-time on the same job. The transitions among the self-employed were very different: only 49% left the labor force completely; 25% reduced hours on the career job. At age 65 or over the differences are even greater: 44% of the selfemployed men became part-time workers on their career job, compared with 7-8% of wage and salary workers. If workers desire hours flexibility as they age and self-employment offers hours flexibility, this is to be expected.

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