February 2017

04Feb

Do Non-Monetary Prices Target the Poor? Evidence from a Field Experiment in India

By Bridget Hoffmann This paper uses willingness to pay (WTP) data from a field experiment in Hyderabad, India in 2013 to determine whether non-monetary prices better target health products to the poor than monetary prices. Monetary WTP is increasing in income and non-monetary WTP is weakly decreasing in income. Household fixed effects in a pooled sample of monetary WTP and non-monetary WTP are used to compare the correlation of income and WTP across price types. It is found that non-monetary...

February 4, 2017
Articles, Labor Market, Pension design
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04Feb

Do Pension Plans with Participant Investment Choice Teach Households to Hold More Equity?

By Scott Weisbenner Some retirement plans allow the participant to choose how funds are invested. Having to direct investments may provide the participant with financial education. This paper finds that households covered by pension plans in which the employee chooses investments are significantly more apt to hold stock outside of their retirement plan than are households with pension plans offering no such choice. The effect of investment choice upon non-pension asset allocation cannot be explained by portfolio rebalancing or differences...

February 4, 2017
Articles, Investing, Labor Market, Savings,
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04Feb

Workers’ Knowledge of their Pension Coverage: A Reevaluation

By Martha Starr-McCluer & Annika Sundén Because employer-provided pensions represent an important source of income during retirement, accurate information on pension coverage would seem to be crucial for making sound decisions on retirement timing, saving and portfolio allocation. However, previous research suggests that workers’ knowledge of their pension provisions is often incomplete or incorrect. This paper re-examines workers’ knowledge of their pension coverage, using matched employer-employee data from the Federal Reserve Board’s Survey of Consumer Finances. We find that, while...

February 4, 2017
Aging, Articles, Labor Market,
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04Feb

Workers' Knowledge of their Pension Coverage: A Reevaluation

By Martha Starr-McCluer & Annika Sundén Because employer-provided pensions represent an important source of income during retirement, accurate information on pension coverage would seem to be crucial for making sound decisions on retirement timing, saving and portfolio allocation. However, previous research suggests that workers’ knowledge of their pension provisions is often incomplete or incorrect. This paper re-examines workers’ knowledge of their pension coverage, using matched employer-employee data from the Federal Reserve Board’s Survey of Consumer Finances. We find that, while...

February 4, 2017
Aging, Articles, Labor Market,
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04Feb

5th Ethiopia economic update : why so idle? – wages and employment in a crowded labor market : draft for public launch

By World Bank Strong economic growth continued in 2014-15, but the drought slowed down Ethiopia’s growth to 8 percent in 2015-16. Exports have had their worst performance in the last decade and the current account balance remained large. Inflation is remarkable stable given the recent drought and even declining; it stood at 5.6 percent in October 2016. Understanding the nature of urban labor markets is important for a successful transition to a manufacturing and service-oriented economy and to further reduce...

February 4, 2017
Articles, Labor Market, Regulation
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04Feb

Pension Coverage in Latin America: trends and determination

By Rafael Rofman & Maria Laura Oliveri This document presents an analysis of pension coverage trends in Latin America for the past decades. Its preparation involved the collection, revision, and processing of household surveys in over 18 countries in the region, spanning a period of almost 40 years in some cases. The main goal of this document is to offer comparable data on pension coverage among the economically active population and the elderly, considering the relevance of several demographic, social,...

February 4, 2017
Articles, Corporate Governance, Labor Market
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04Feb

Social Security in Theory and Practice (II): Efficiency Theories

By Casey B. Mulligan & Xavier Sala-i-Martin 166 countries have some kind of public old age pension.What economic forces create and sustain old age Social Security as a public program? Mulligan and Sala-i-Martin (1999b) document several of the internationally and historically common features of social security programs, and explore "political" theories of Social Security. This paper discusses the "efficiency theories", which view creation of the SS program as a full of partial solution to some market failure. Efficiency explanations of social...

February 4, 2017
Aging, Articles, Labor Market,
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04Feb

The ‘Crisis’ in Defined Benefit Corporate Pension Liabilities: Current Solutions and Future Prospects

By Gordon L. Clark & Ashby H. B. Monk Once an integral component of company-sponsored compensation schemes in many western economies, private defined benefit (DB) pensions are in decline. For many, DB schemes (and their related health care liabilities, depending on the jurisdiction) have hobbled the financial well-being of plan sponsors and even whole sectors of industry. If a constraint on shareholder value in the short-term, these schemes threaten long-term corporate survival in the emerging global economy. While there remains considerable debate...

February 4, 2017
Articles, Investing, Labor Market, ,
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04Feb

The 'Crisis' in Defined Benefit Corporate Pension Liabilities: Current Solutions and Future Prospects

By Gordon L. Clark & Ashby H. B. Monk Once an integral component of company-sponsored compensation schemes in many western economies, private defined benefit (DB) pensions are in decline. For many, DB schemes (and their related health care liabilities, depending on the jurisdiction) have hobbled the financial well-being of plan sponsors and even whole sectors of industry. If a constraint on shareholder value in the short-term, these schemes threaten long-term corporate survival in the emerging global economy. While there remains considerable debate...

February 4, 2017
Articles, Investing, Labor Market, ,
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04Feb

Finance and Labor: Perspectives on Risk, Inequality and Democracy

By Sanford M. Jacoby This paper considers the association between financial development and labor-market outcomes such as risk and inequality. The relationship is not straightforward, however. It is mediated by politics at the national and corporate levels. Politics spurs financial development, which sets in motion countervailing efforts to restrain the effect of finance on inequality and risk. The empirical analysis relies on historical, comparative, and contemporary evidence. Emphasis is given to recent events in the United States: the political origins...

February 4, 2017
Articles, Labor Market, Regulation, System Sustainability, , ,
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