By David A. Wise
This quantity offers cutting edge learn on problems with significance to the health and wellbeing of older individuals: hard work marketplace habit, wellbeing and fitness care, housing and residing preparations, and saving and wealth.Specific themes comprise the influence of work marketplace rigidities at the employment of older staff; the impact on retirement of the supply of continuation assurance merits; and the impression of the possible cost process (PPS) on emerging Medicare expenditures. additionally thought of are the results of future health and wealth on residing association judgements; the inducement 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 stories use simulations that describe the results of stylized fiscal versions of habit one of the aged. This well timed quantity could be of curiosity to somebody all for the economics of getting older.
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Extra resources for Advances in the Economics of Aging (National Bureau of Economic Research Project Report)
Often unions negotiate job pay or title by seniority rather than by productivity. From the point of view of the worker this looks like specific human capital because the seniority has no value at another firm. From the point of view of the firm it is the way of determining the shape of the lifetime wage trajectory, but to the extent that pay late in the career is not connected to productivity, the firm will have an incentive to get rid of highly paid older workers. It is surely no accident that, as will be discussed later, defined-benefit pensions are most often found in unionized firms, and that the pensions have provisions that encourage retirement.
Besides its obvious effects on the lifetime income of the worker, it seems to affect the employment opportunities of older workers. Paul (1987, 172) reports on a survey of twenty-five managers who administered work programs in their organizations. The Social Security retirement earnings test was identified by eight of the managers as the greatest disincentive to work for Social Security beneficiaries. The managers administering retiree labor pools expressed frustration in the fact that once retirees who are receiving Social Security earn $6,000 (the 1982 maximum earnings limitation2') they usually cease working, or they will limit their work hours, upon re-employment, so as not to exceed the $6,000 limit.
In an early release of the Health and Retirement Survey (HRS), only 14% of wage workers aged 55-61 said they were free both to increase and to decrease hours. Productivity The discussion has been about flexibility in the choice of hours of work, but wage flexibility is an important aspect of a flexible labor market. If the productivity of a worker or group of workers falls, yet employers are not free to reduce wages, employment practices will develop leading to job separation rather than income reduction.