By David A. Wise

This quantity provides leading edge study on problems with significance to the wellbeing and fitness of older individuals: exertions marketplace habit, overall healthiness care, housing and residing preparations, and saving and wealth.Specific subject matters contain the impact of work industry rigidities at the employment of older employees; the impact on retirement of the supply of continuation insurance merits; and the effect of the possible check approach (PPS) on emerging Medicare bills. additionally thought of are the consequences of wellbeing and fitness and wealth on residing association judgements; the motivation results of employer-provided pension plans; the measure of substitution among 401(k) plans and different employer-provided retirement saving preparations; and the level to which housing wealth determines how a lot the aged store and consume.Two ultimate reviews use simulations that describe the consequences of stylized fiscal types of habit one of the aged. This well timed quantity may be of curiosity to somebody focused on the economics of getting older.

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Extra resources for Advances in the Economics of Aging (National Bureau of Economic Research Project Report)

Sample text

Although some managers mentioned this as a barrier to hiring retirees on a part-time basis, it was viewed to be a minor factor compared with the Social Security earnings test (Paul 1987). An aspect that could be quite important under some circumstances has to do with inflation risk. While a worker is employed under a defined-benefit plan, pension benefits are on average protected against inflation risk because prices and money wages change at about the same rates. Thus, if there is general inflation during the last five years of work life, money wages should increase by the same amount, keeping the real value of the pension at the point of retirement about the same.

Of course, physical productivity cannot be measured in most jobs, but statements by management confirm the findings about physical productivity. Paul (1983a) reports that, when supervisors rate the performance of workers compared with the requirements of the job, older workers do as well on average as younger workers. The general finding is well summarized as follows: “Because chronological age is not related to maintenance of performance, older employees are not more costly to firms because of declining productivity.

For example, most of the skills of a General Motors employee will transfer to Ford, but few of them will transfer 37 The Effect of Labor Market Rigidities on Older Workers to a Wall Street law firm. The general point is nonetheless valid: over time workers become more valuable to a particular firm than to any other firm, so that, at least potentially, the firm can pay the worker more than any other firm could. Some productivity-increasingactivities are not specific human capital in an obvious way, but they still have the characteristics of specific human capital.

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