Housing Wealth, Property Taxes, and Labor Supply among the Elderly

Abstract We study the role of housing wealth in financing retirement consumption. In our model retirees: 1. derive utility benefits from remaining in their home (aging in place); and 2. choose in each period whether to maintain their house. The evidence that we present shows that these features are important in explaining the saving decisions of the elderly. The costs and the maintenance requirement of reverse mortgages (RMs) reduce (or eliminate) the benefits of the loans for retirees who wish to do less maintenance. We evaluate the impact of different loan features on retirees’ utility, cash-flows to lenders, and to the government agency that provides mortgage insurance. We show that combining RMs with insurance against a forced home sale (e.g. due to a move to a nursing home) is Pareto improving and can lead to increased demand for the loans due to product complementarities.

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Welfare for the elderly: the effects of SSI on pre-retirement labor supply

Journal of Public Economics ◽

10.1016/s0047-2727(99)00111-5 ◽

2000 ◽

Vol 78 (1-2) ◽

pp. 51-80 ◽

Cited By ~ 25

Author(s):

David Neumark ◽

Elizabeth Powers

Keyword(s):

Labor Supply ◽

The Elderly

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The Impact of Population Ageing and Labor Supply on Economic Growth - Analysis Based on Panel Autoregressive Model

HOLISTICA – Journal of Business and Public Administration ◽

10.2478/hjbpa-2020-0004 ◽

2020 ◽

Vol 11 (1) ◽

pp. 51-58

Author(s):

Changing Sun

Keyword(s):

Economic Growth ◽

Panel Data ◽

Labor Supply ◽

Growth Analysis ◽

The Elderly ◽

Variance Decomposition ◽

Population Ageing ◽

Theoretical Level ◽

The Impact ◽

Auto Regression

AbstractPopulation Ageing will increase the proportion of the elderly in the population and affect the Labor supply, which will eventually have an effect on the economy. This paper first analyzes the impact of aging on labor supply and economic growth from the theoretical level. Population ageing argues will reduce the supply of labor and hamper economic growth. Then, based on the panel data of 31 provinces, municipalities and autonomous regions in China, this paper uses panel auto-regression Model. An empirical analysis of the interaction between population ageing and labor force is carried out by means of Impulse Response Diagram and variance decomposition. The study adds to evidence that ageing reduces the supply of labor and hence economic growth.

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