scholarly journals HOW ACCURATELY DOES 70% FINAL EMPLOYMENT EARNINGS REPLACEMENT MEASURE RETIREMENT INCOME (IN)ADEQUACY? INTRODUCING THE LIVING STANDARDS REPLACEMENT RATE (LSRR)

2016 ◽  
Vol 46 (3) ◽  
pp. 627-676 ◽  
Author(s):  
Bonnie-Jeanne MacDonald ◽  
Lars Osberg ◽  
Kevin D. Moore
Keyword(s):  
Living Standards ◽  
Living Standard ◽  
Retirement Income ◽  
Home Equity ◽  
Replacement Rate ◽  
Policy Makers ◽  
Income Adequacy ◽  
Rate Measure ◽  
The Right ◽  
Dynamic Population

AbstractWill 70% of a worker's final annual employment earnings sustain living standards after retirement? Despite increasing skepticism, the most dominant measure of retirement income adequacy by financial planners, pensions plan advisors, academics and public policy makers is the “final employment earnings replacement rate”, where 70% is considered the right target to ensure living standards remain at approximately the same level after retirement. Using Statistics Canada's LifePaths dynamic population micro-simulation model, this paper asks whether those individuals from the 1951–1958 Canadian birth cohort who attain roughly a 70% final employment earnings replacement rate (as conventionally measured) at retirement do, in fact, achieve approximate continuity in their living standards. We find that the conventional final earnings replacement rate measure has little predictive value for living standards continuity between working-life and retirement. The primary reason is that employment earnings in a single year is not a reliable representation of a worker's standard of living — it relies on an inadequate pre-retirement measurement period, does not incorporate important components of consumption sources (such as home equity), and ignores household size (particularly children). As a result, we find that the correlation between the conventional earnings replacement rate and actual living standards continuity is relatively low (0.11). The paper therefore suggests an alternative metric for assessing how well a worker's living standard is maintained after retirement — i.e., the Living Standards Replacement Rate, or the LSRR. The LSRR provides a more accurate, understandable and consistent measure of retirement income adequacy.

Effect of off-farm income on multi-dimensional poverty among rural farm households in Nigeria

2019 ◽  
Vol 46 (9) ◽  
pp. 1081-1094 ◽  
Author(s):  
Ifeoluwa Damilola Adeoye ◽  
Wayo Seini ◽  
Daniel Sarpong ◽  
Ditchfield Amegashie
Keyword(s):  
National Level ◽  
Living Standards ◽  
Farm Households ◽  
Living Standard ◽  
Farm Income ◽  
Future Research ◽  
Policy Makers ◽  
Content Type ◽  
Self Employment ◽  
Geographical Regions

Purpose The purpose of this paper is to analyze the effect of the different components of off-farm income on multi-dimensional poverty. Furthermore, the study aims to measure multi-dimensional poverty and also identify the determinants of multi-dimensional poverty in Nigeria. The paper reveals the different contributions of the dimensions of education, health and living standard. Design/methodology/approach The study focuses on rural farm households in Nigeria. Data are obtained from the Nigeria General Household Survey, 2013. The survey covers both urban and rural areas of the 36 states of Nigeria. Owing to the interest of this study in the rural farm household’s sub-sector, a nationally representative sample of 836 rural farm households are selected for the study after the data merging process. Rural farm households in this paper earn 50 percent of their total income from crop and livestock production. The paper employs the Multi-dimensional Poverty Index (MPI) to measure multi-dimensional poverty across the six different geographical zones of Nigeria. The probit regression model is used to estimate and analyze the effect of off-farm income components on multi-dimensional poverty and also to identify the determinants of multi-dimensional poverty. Findings The results of the study show that among the off-farm income components, the non-farm wage income and non-farm self-employment income have negative association with multi-dimensional poverty. Findings show that multi-dimensional poverty is high in Nigeria with deprivations in health contributing the most. Northern Regions have a higher estimate. Results reveal that sex, age, number of adults, formal credit access, access to extension services and location characteristics are key determinants of multi-dimensional poverty. The MPI for Nigeria averaged 47 percent. Across regions, deprivation in the health dimension contributes about 44 percent to multi-dimensional poverty. Deprivation in living standards contributes 40.5 percent, while deprivation in education contributes 15.5 percent to multi-dimensional poverty. Research limitations/implications Due to the nature of the data used, the health indicators (nutrition and child mortality) are absent but proxies are used instead. Future research could introduce gender dimensions. Practical implications Improving the involvement of rural farm households in non-farm self-employment sector could improve their livelihoods and prevent migration to urban centers, especially among the youths. Social implications Improving the quality of health, education and living standards will lead to lower poverty levels in Nigeria. Farmers can best reduce their multi-dimensional poverty by engaging in more off-farm jobs. Originality/value This paper provides information to policy makers on the effect of different components of income from the off-farm sector on multi-dimensional poverty alongside with the determinants of multi-dimensional poverty at a national level for the rural farm households. By using MPI, the contribution of the different dimensions used in computing the MPI across the six geographical regions within the country is revealed. This provides policy makers with more information for development purposes.

Measuring retirement resource adequacy

2008 ◽  
Vol 9 (2) ◽  
pp. 235-262 ◽  
Author(s):  
PETER J. BRADY
Keyword(s):  
Standard Of Living ◽  
Investment Behavior ◽  
Retirement Income ◽  
Replacement Rate ◽  
Standard Analysis ◽  
Rate Measure ◽  
Study Results

AbstractTo maintain their standard of living during retirement, it is often assumed that individuals need to save enough to replace 75–80% of their final pay. This paper develops a replacement rate measure that better corresponds with a replacement of consumption by properly accounting for savings, taxes, and owner-occupied housing. Savings and investment behavior judged by standard analysis to be inadequate is shown to result in high real consumption during retirement relative to pre-retirement consumption. For example, the simulated savings and investment behavior of single individuals in this study results in retirement income of about 60% of final earnings, well below the typical adequacy threshold of 75–80%. However, this corresponds to replacing about 90% of pre-retirement consumption for renters and over 100% for homeowners who have paid off their mortgage.

Effect of gender and generation on objective and subjective retirement income adequacy at three points in time

2019 ◽  
Author(s):  
◽  
Dalisha D. Herring
Keyword(s):  
Logistic Regression ◽  
Baby Boomers ◽  
Generation X ◽  
Generational Differences ◽  
Living Standard ◽  
Retirement Income ◽  
University Of Missouri ◽  
Black African ◽  
Consumer Finances ◽  
Income Adequacy

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT REQUEST OF AUTHOR.] The purpose of this dissertation is to examine the effect of gender and generation on subjective and objective measures of retirement income adequacy (RIA). The two generations studied -- Baby Boomers and Generation X -- each have experienced somewhat different retirement planning environments during their working years. I assessed gender and generational differences in both measures of RIA at three points in time and identify the factors that play a role in these differences. Questions this dissertation seeks to answer include whether being female is a significant factor in either objective or subjective RIA assessment, whether being female affects objective and subjective RIA in different years, whether being in Generation X is a significant factor in objective and subjective RIA assessment, and whether being in Generation X affects objective and subjective RIA in different years. The research design includes analysis of respondents born 1946 to 1964, Baby Boomers, and 1965 to 1981, Generation X, in the 1989, 2001, and 2016 Survey of Consumer Finances. Logistic regression assesses the likelihood of meeting the objective RIA target. Respondents meet the target if they have a retirement income replacement ratio of at least 73%. Ordinal logistic regression assesses the gender and generational differences in subjective RIA. Subjective RIA is rated by respondents as either (1) totally inadequate, (2) "unsatisfactory," (3) enough to maintain living standard, (4) "satisfactory," or (5) very satisfactory. While results did not indicate gender as a significant factor in objective and subjective retirement income adequacy as expected, generation does play a role in these measures. Findings also indicate that race and income level play a significant role in objective and subjective RIA. Individuals identifying as black/African American and households in the highest income tercile tend to be over-confident about their expected retirement income, while those in the lowest tercile tend be under-confident. Individuals with self-assessed health status of anything less than excellent are less likely to meet the objective RIA target. When planning for income needs in retirement, it is important for individuals and families to consider increased healthcare cost that comes with advanced age.

The Impact of the Public Expenditure Cuts Policy on the Labor Market in Vietnam

2012 ◽  
pp. 22-46
Author(s):  
Huong Nguyen Thi Lan ◽  
Toan Pham Ngoc
Keyword(s):  
Labor Market ◽  
Computable General Equilibrium ◽  
Impact Evaluation ◽  
Public Expenditure ◽  
Computable General Equilibrium Model ◽  
Living Standard ◽  
Input Output ◽  
Policy Makers ◽  
The Public ◽  
The Impact

The purpose of this study is to evaluate the impact of public expenditure cuts on employment and income to support policies for the development of the labor mar- ket. Impact evaluation is of interest for policy makers as well as researchers. This paper presents a method – that is based on a Computable General Equilibrium model – to analyse the impact of the public expenditure cuts policy on employment and income in industries and occupations in Vietnam using macro data, the Input output table, 2006, 2008 and the 2010 Vietnam Household Living Standard Survey.

Developing and Validating a Scale of Tourism Gentrification in Rural Areas

2021 ◽  
pp. 109634802110149
Author(s):  
Chaohui Wang ◽  
Yumei Xu ◽  
Tingting (Christina) Zhang
Keyword(s):  
Rural Areas ◽  
Living Standards ◽  
Rural Tourism ◽  
Measurement Scale ◽  
Community Culture ◽  
Policy Makers ◽  
Qualitative And Quantitative ◽  
Cultural Appreciation ◽  
Great Progress ◽  
Development And Validation

In recent years, tourism gentrification has made great progress in rural areas and has had significant impacts on these areas’ development, specifically in the domains of the economy, living standards, community, culture, and environment. Tourists play a key role in developing tourism gentrification in rural areas, but research investigating tourism gentrification in rural areas from the tourist perspective is scarce. To fill this gap, we focus on tourism gentrification and develop a measurement scale from the tourist perspective through multiple qualitative and quantitative steps. Our findings confirm that tourism gentrification in rural areas from the tourist perspective comprises eight dimensions: economic growth, enhanced environment, enhanced living standards, individual civilization, improved communication, promoted social environment, cultural appreciation, and improved individual quality. Through development and validation of the scale, we hope to offer a comprehensive referencing index of tourism gentrification in rural areas to policy makers and rural tourism practitioners.

scholarly journals The Rise of Right-Wing Extremism in European Union

2015 ◽  
Vol 17 (1) ◽  
pp. 43-57
Author(s):  
Ljupcho Stevkovski
Keyword(s):  
European Union ◽  
Young People ◽  
Economic Crisis ◽  
Living Standards ◽  
Radical Right ◽  
Right Wing ◽  
The European Union ◽  
Balkan Countries ◽  
The Right ◽  
Right Wing Extremism

It is a fact that in the European Union there is a strengthening of right-wing extremism, radical right movement, populism and nationalism. The consequences of the economic crisis, such as a decline in living standards, losing of jobs, rising unemployment especially among young people, undoubtedly goes in favor of strengthening the right-wing extremism. In the research, forms of manifestation will be covered of this dangerous phenomenon and response of the institutions. Western Balkan countries, as a result of right-wing extremism, are especially sensitive region on possible consequences that might occur, since there are several unresolved political problems, which can very easily turn into a new cycle of conflicts, if European integration processes get delayed indefinitely.

Stabilizing American Society: Kenneth Boulding and the Integration of the Social Sciences, 1943–1980

2010 ◽  
Vol 23 (2) ◽  
pp. 221-265 ◽  
Author(s):  
Philippe Fontaine
Keyword(s):  
Social Sciences ◽  
World War Ii ◽  
World War ◽  
Policy Makers ◽  
Main Determinant ◽  
Disciplinary Boundaries ◽  
The Social ◽  
Social Scientific ◽  
American Society ◽  
The Right

ArgumentFor more than thirty years after World War II, the unconventional economist Kenneth E. Boulding (1910–1993) was a fervent advocate of the integration of the social sciences. Building on common general principles from various fields, notably economics, political science, and sociology, Boulding claimed that an integrated social science in which mental images were recognized as the main determinant of human behavior would allow for a better understanding of society. Boulding's approach culminated in the social triangle, a view of society as comprised of three main social organizers – exchange, threat, and love – combined in varying proportions. According to this view, the problems of American society were caused by an unbalanced combination of these three organizers. The goal of integrated social scientific knowledge was therefore to help policy makers achieve the “right” proportions of exchange, threat, and love that would lead to social stabilization. Though he was hopeful that cross-disciplinary exchanges would overcome the shortcomings of too narrow specialization, Boulding found that rather than being the locus of a peaceful and mutually beneficial exchange, disciplinary boundaries were often the occasion of conflict and miscommunication.

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