By David A. Wise
This quantity provides cutting edge examine on problems with value to the health of older people: hard work industry habit, healthiness care, housing and residing preparations, and saving and wealth.Specific subject matters comprise the impact of work marketplace rigidities at the employment of older staff; the influence on retirement of the supply of continuation assurance advantages; and the impact of the potential check method (PPS) on emerging Medicare bills. additionally thought of are the results of overall healthiness 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 keep and consume.Two ultimate reviews use simulations that describe the results of stylized monetary versions of habit one of the aged. This well timed quantity can be of curiosity to a person concerned about the economics of getting older.
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Additional info for Advances in the Economics of Aging (National Bureau of Economic Research Project Report)
The effect on the mobility of worker with many years of service will depend on the nature of the pension plan and on the wage path of the worker. 02, e is the final year’s earnings, and y is years of service. If e increases linearly with years of service, as would be the case when the same raise is given each year, then b increases in the square of y. Then, the gain in benefits from an additional year of service is linear in y, and the value of an additional year of service is very much greater at the end of a long work life than at the beginning.
19The figure shows a remarkable 19. Someone is defined to be retired if he or she has a sudden and discontinuous drop in hours of work (Burtless and Moffitt 1985). 32 Michael D. Hurd Annual Income wage s Security benefits Leisure Fig. 3 Effect of earnings test on annual income bunching of workers near the exempt amount: 14% have hours in the range of 91% to 100% of the exempt amount; 12% have hours in the range of 101%to 110%. Given that the data have observationerror and that it is probably difficult for a worker to reach exactly the exempt amount, the figure shows that workers respond to the earnings test in a way not predicted by the utility-maximizing models.
Such skills and knowledge are called specific human capital because they are specific to the firm. Skills and knowledge that would increase productivity should the worker change to another firm are called general human capital. When a firm hires a worker who is expected to remain for many years, it will be in the firm’s interest to invest in the specific human capital of the worker; this kind of investment is thought to be an important cause of rising productivity paths early in a worker’s career.