By Nicola Heusel We analyze the effect of direct labour representation in supervisory boards on the risk of corporate pension plans.We exploit employee representation requirements mandated by German labour law and find that firms with parity employee representation reduce pension plan risk both in terms of funding as well as in terms of investment risk. Source: SSRN
By Andrés Dean, Sebastian Fleitas, KU Leuven, Mariana Zerpa Many defined-benefit pension systems in developed and developing countries use a small set of final years of earnings to compute pension benefits. This provides dynamic incentives to report higher earnings in the final years of the career. In this paper, we document the responses of self-employed and employed workers to these incentives, using social security administrative records and household surveys from Uruguay. We implement event studies that leverage the...
The aim of this anthology is to provide new contributions to the collective knowledge of the issues and challenges of designing mandated and earnings-related universal public pension schemes (UPPS), in which a universal public nonfinancial defined contribution (NDC) scheme is one of four design options. In 1994, Nonfinancial Defined Contribution (NDC) Pension Schemes left the crib and was taking its first steps in Sweden, Italy, and Latvia. A couple of years later a fourth sibling was born in Poland, with...
By Julien Albertini, Xavier Fairise, Anthony Terriau How do labor market and health outcomes interact over the life cycle in a country characterized by a large informal sector and strong inequalities? To quantify the effects of bad health on labor market trajectories, wealth, and consumption, we develop a life-cycle heterogeneous agents model with a formal and an informal sector. We estimate our model using data from the National Income Dynamics Study, the first nationally representative panel study in South Africa. We...
By Philip D. Sloane, Sheryl Zimmerman, Johanna Silbersack This book provides a comprehensive overview of a growing phenomenon in migration: retired Americans moving to Latin America. Through in-depth profiles of two of the most popular destinations – Cuenca, Ecuador and San Miguel de Allende, Mexico, the book provides a unique commentary on the social forces shaping this new diaspora and its impact on the settings to which retirees relocate. Sections of the book address the lives and activities of retirees themselves; their...
By The people´s pension Last year The People’s Pension examined in detail the drivers of the yawning gap in pension income between women and men, as the first part of a series examining the UK’s ‘under-pensioned’. Our second report focuses on another dramatically underpensioned group: ethnic minorities. New calculations by The People’s Pension reveal that the UK’s overall ethnicity pension gap – the percentage difference in pension income for pensioners who belong to an ethnic minority group compared to pensioners...
By Minhaj Mahmud, Italo A. Gutierrez, Krishna Kumar, Shanthi Nataraj This study uses a choice experiment among 2,000 workers in Bangladesh to elicit willingness to pay (WTP) for job attributes: a contract, termination notice, working hours, paid leave, and a pension fund. Using a stated preference method allows calculation of WTP for benefits in this setting, despite the lack of data on worker transitions, and the fact that many workers are self-employed, which makes it difficult to use revealed preference...
By: Robert L. Clark, Beth Ritter The American population is aging and changes in the population’s age structure are leading to an aging of the nation’s workforce. In addition, changes to age specific participation rates are exacerbating the aging of the national labor force. An important challenge for firms and organizations is how does workforce aging affect labor costs, productivity and the sustainability of the organization. This paper examines employer responses to workforce aging including changes retirement policies, modification...
By: Christoph Freudenberg, Frederik G Toscani Past reforms have put the Peruvian pension system on a largely fiscally sustainable path, but the system faces important challenges in providing adequate pension levels for a large share of the population. Using administrative microdata at the affiliate level, we project replacement rates in the defined benefit (DB) and defined contribution (DC) pillars over the next 30 years and simulate the impact of various reform scenarios on the average level and distribution of...
By: Jose Escarce, Lorenzo Rocco To our knowledge, no study has examined the effect of immigration on the health of older natives. We use the Study of Health, Ageing and Retirement in Europe (SHARE) to investigate whether immigration affects depression among natives 65-80 years old. Immigration may increase the supply and lower the price of personal and household services, a term that refers to care services and non-care services such as cleaning, meal preparation, and domestic chores. Higher consumption...
