Delay the Pension Age or Adjust the Pension Benefit? Implications for Labor Supply and Individual Welfare in China

Using the Panel Study of Income Dynamics, we provide evidence that to understand household decisions and evaluate policies designed to affect individual welfare, it is important to add an intertemporal dimension to the by-now standard static collective models of the household. Specifically, we document that the observed differences in labor supply by gender and marital status do not arise suddenly at the time of marriage, but rather emerge gradually over time. We then propose an intertemporal collective model that has the potential of explaining the observed patterns.

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Re-examining female labor supply responses to the 1994 Australian pension reform

Review of Economics of the Household ◽

10.1007/s11150-021-09561-y ◽

2021 ◽

Author(s):

Todd Morris

Keyword(s):

Labor Supply ◽

Comparison Group ◽

Pension Reform ◽

Participation Rates ◽

Female Labor ◽

Working Lives ◽

Percentage Points ◽

Retirement Decisions ◽

Pension Age ◽

Female Specific

AbstractMany governments are aiming to extend working lives by raising the age at which people can claim retirement pensions. This makes it vital to understand how these policies affect retirement decisions. In this paper, I revisit the labor supply effects of a major Australian reform that increased women’s pension age from 60 to 65. Atalay and Barrett (2015) studied these effects using repeated household surveys and a differences-in-differences design in which male cohorts form the comparison group. They estimate that the reform increased female labor force participation by 12 percentage points. Using earlier data, I show that the parallel-trends assumption did not hold before the reform because of a strong female-specific trend in participation rates across the relevant cohorts. Accounting for this trend, the estimated effect on female participation falls by two-thirds and becomes statistically insignificant at conventional levels. This highlights the importance of carefully assessing and controlling for trends across cohorts when evaluating pension reforms, which are typically phased in across cohorts.

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The effect on pension fund contributions of a change in the entry age.

Journal of the Staple Inn Actuarial Society ◽

10.1017/s0020269x00005636 ◽

1954 ◽

Vol 12 (04) ◽

pp. 227-231

Author(s):

M. T. L. Bizley

Keyword(s):

Pension Fund ◽

Present Note ◽

Present Writer ◽

Pension Benefit ◽

Additional Contribution ◽

Pension Age ◽

Entry Age

In a previous paper (J.S.S. 9, 105) the present writer investigated the effect upon pension fund contribution rates of a change in the salary scale. A further note (J.S.S. 10, 47) discussed the effect of a change in the rate of interest. The present note is concerned with the variation in contribution rates with varying entry age, the actuarial bases remaining constant. The note takes account only of the contribution in respect of the pension benefit and disregards any additional contribution required to provide a benefit payable on death or withdrawal. As before, we suppose that a single pension age, M, independent of entry age, sufficiently allows for normal, late and early retirements (if any) and that the pension is 100 k% of pensionable salary for each year of service.

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Re-examining female labor supply responses to the 1994 Australian pension reform

10.31235/osf.io/uznmp ◽

2020 ◽

Author(s):

Todd Morris

Keyword(s):

Labor Supply ◽

Comparison Group ◽

Pension Reform ◽

Participation Rates ◽

Female Labor ◽

Working Lives ◽

Percentage Points ◽

Retirement Decisions ◽

Pension Age ◽

Female Specific

Many governments are aiming to extend working lives by raising the age at which people can claim retirement pensions. This makes it vital to understand how these policies affect retirement decisions. In this paper, I revisit the labor supply effects of a major Australian reform that increased women’s pension age from 60 to 65. Atalay and Barrett (2015) studied these effects using repeated household surveys and a differences-in-differences design in which male cohorts form the comparison group. They estimate that the reform increased female labor force participation by 12 percentage points. Using earlier data, I show that the parallel-trends assumption did not hold before the reform because of a strong female-speciﬁc trend in participation rates across the relevant cohorts. Accounting for this trend, the estimated effect on female participation falls by two-thirds and becomes statistically insigniﬁcant at conventional levels. This highlights the importance of carefully assessing and controlling for trends across cohorts when evaluating pension reforms, which are typically phased in across cohorts.

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Implications of higher retirement age for the labor market

Voprosy Ekonomiki ◽

10.32609/0042-8736-2017-3-22-39 ◽

2017 ◽

pp. 22-39 ◽

Cited By ~ 8

Author(s):

M. Ivanova ◽

A. Balaev ◽

E. Gurvich

Keyword(s):

Economic Growth ◽

Labor Market ◽

Labor Supply ◽

Labor Force ◽

Labor Demand ◽

Retirement Age ◽

Demographic Trends ◽

Men And Women ◽

Demographic Projections ◽

The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

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