scholarly journals Social Security, Labor Supply and Health of Older Workers: Quasi-Experimental Evidence from a Large Reform

2020 ◽  
Author(s):  
Itay Saporta Eksten ◽  
Ity Shurtz ◽  
Sarit Weisburd
Author(s):  
Itay Saporta-Eksten ◽  
Ity Shurtz ◽  
Sarit Weisburd

Abstract We study the effects of public pension systems on the retirement timing of older workers and, in turn, the health consequences of delaying retirement by those workers. Causal inference relies on a social security reform in Israel that shifted payments from husbands to their (non-working) wives, thereby substantially reducing the implied tax on the husband's employment while keeping overall household wealth constant. Using administrative social security data, we estimate extensive-margin labor supply elasticities w.r.t. the average net-of-tax rate of about 0.43 for men over 65. Using the reform to instrument for employment, we find that working an additional full year at old age decreases longevity. This mortality effect occurs after age 75 and is driven by workers holding blue-collar jobs. Finally, we evaluate the effect of the reform on earnings. The results imply a small value for an additional year of life, suggesting that workers underestimate the health cost of employment at older ages.


ILR Review ◽  
2019 ◽  
Vol 73 (1) ◽  
pp. 153-177
Author(s):  
Mark Borgschulte ◽  
Heepyung Cho

The authors study the effect of the minimum wage on the employment outcomes and Social Security claiming of older US workers from 1983 to 2016. The probability of work at or near the minimum wage increases substantially near retirement, and previous researchers and policies suggest that older workers may be particularly vulnerable to any disemployment effects of the minimum wage. Results show no evidence that the minimum wage causes earlier retirements. Instead, estimates suggest that higher minimum wages increase earnings and may have small positive effects on the labor supply of workers in the key ages of 62 to 70. Consistent with increased earnings and delayed retirement, higher minimum wages decrease the number of Social Security beneficiaries and amount of benefits disbursed. The minimum wage appears to increase financial resources for workers near retirement.


Author(s):  
Giam Pietro Cipriani ◽  
Tamara Fioroni

Abstract This paper studies retirement and child support policies in a small, open, overlapping-generations economy with PAYG social security and endogenous retirement and fertility decisions. It demonstrates that neither fertility nor retirement choices necessarily coincide with socially optimal allocation, because agents do not take into account the externalities of fertility and the elderly labor supply in the economy as a whole. It shows that governments can realize the first-best allocation by introducing a child allowance scheme and a subsidy to incentivize the labor supply of older workers. As an alternative to subsidizing the elderly labor supply, we show that the first-best allocation can also be achieved by controlling the retirement age. Finally, the model is simulated in order to study whether the policies devoted to realizing the social optimum in a market economy could be a Pareto improvement.


2020 ◽  
Vol 11 (1) ◽  
Author(s):  
Daniel Auer ◽  
Friederike Römer ◽  
Jasper Tjaden

AbstractWhether and to what extent corruption drives emigration has received growing attention in the literature in recent years, yet the nature of the relationship remains unclear. To test causal claims, we rely on representative global survey data of more than 280,000 respondents across 67 countries from 2010 to 2014. We use two different measures of emigration intentions and individual, as well as country-level measures of corruption, and propose to instrument the endogenous presence of corruption in a country with the prevalence of cashless transactions in the economy to correct for potential estimation bias. We find robust support for the hypothesis that corruption increases emigration intentions across countries. The effect, however, is likely to be underestimated in conventional models that do not account for endogeneity. The results highlight the need to look beyond purely economic, social, security-related, and environmental drivers when assessing the root causes of migration.


Sign in / Sign up

Export Citation Format

Share Document