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Author: Thomas L. Steinmeier Publisher: ISBN: Category : Languages : en Pages :
Book Description
The model analyzed here constrains most work on the main job to be full time. Partial retirement requires a job change and a wage reduction.Estimates of utility function parameters and their distributions incorporate information on age of leaving the main job and of full retirement. These estimates determine the slope at different ages and the convexity of within period indifference curves between compensation and leisure. Even though age specific dummy variables are not used, the model closely tracks retirement behavior. Policy analysis based on earlier models with simpler structures is shown to be misleading
Author: Thomas L. Steinmeier Publisher: ISBN: Category : Languages : en Pages :
Book Description
The model analyzed here constrains most work on the main job to be full time. Partial retirement requires a job change and a wage reduction.Estimates of utility function parameters and their distributions incorporate information on age of leaving the main job and of full retirement. These estimates determine the slope at different ages and the convexity of within period indifference curves between compensation and leisure. Even though age specific dummy variables are not used, the model closely tracks retirement behavior. Policy analysis based on earlier models with simpler structures is shown to be misleading
Author: Alan L. Gustman Publisher: ISBN: Category : Dual-career families Languages : en Pages : 84
Book Description
A structural econometric model of retirement of married couples is specified and estimated with recent panel data from the NLS for Mature Women. A coincidence of spouses retiring together, despite the younger ages of wives, suggests explicit efforts at coordination. The estimates suggest that one reason is a coincidence of tastes for leisure. More importantly, each spouse, and perhaps husbands in particular, values retirement more once their spouse has retired. The opportunity set accounts for peaks in the retirement hazards of each spouse, but coordination in opportunities is not responsible for coordination of retirement dates.
Author: John Bound Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
In this paper, we specify a dynamic programming model that addresses the interplay among health, financial resources, and the labor market behavior of men in the later part of their working lives. The model is estimated using data from the Health and Retirement Study. We use the model to simulate the impact on behavior of raising the normal retirement age, eliminating early retirement altogether and introducing universal health insurance.
Author: Alan L. Gustman Publisher: ISBN: Category : Retirement Languages : en Pages : 74
Book Description
The model analyzed here constrains most work on the main job to be full time. Partial retirement requires a job change and a wage reduction. Estimates of utility function parameters and their distributions incorporate information on age of leaving the main job and of full retirement. These estimates determine the slope at different ages and the convexity of within period indifference curves between compensation and leisure. Even though age specific dummy variables are not used, the model closely tracks retirement behavior. Policy analysis based on earlier models with simpler structures is shown to be misleading.
Author: Alan L. Gustman Publisher: ISBN: Category : Languages : en Pages : 47
Book Description
This paper specifies and estimates a structural life cycle model of retirement and wealth and applies that model both to understand the role of the social security early entitlement age in creating a peak in retirements at age 62, and to simulate the effects of postponing the Social Security early entitlement age from 62 to 64.The model includes a set of budget equations and a utility function. Data are from the first five waves of the Health and Retirement Study and are confined to married men. The budget equations fully incorporate the complex incentives from social security (relying mainly on respondents' earnings records), wage offers for full and partial retirement work, the incentives created by pensions (measured from employer provided plan descriptions), as well as the influence on retirement and saving of health status, family structure, and constraints from the firm side, such as layoffs and inability to reduce hours on the main job. Parameters of the utility function reflect the influences of time and leisure preference and vary among individuals. Estimation is based on the general method of moments.Our estimates suggest that leisure and time preference are widely distributed among the population, with a bimodal distribution of time preference. Discount rates are either very low or very high. Those with high discount rates find the actuarial adjustments in social security benefits, which use a 3 percent real interest rate, to be inadequate. Once they reach age 62, the benefit accrual profile declines with age. This is the major explanation for the spike in retirement activity at 62. Liquidity constraints from inability to borrow on social security and pension benefits add to this effect.Simulations with the model suggest that raising the social security early entitlement age from age 62 to 64 will shift about three fifths of the bunching of retirements at age 62 to age 64. The bunching amounts to about 8 percent of the population, so raising the social security early age of entitlement will have a substantial effect on the social security system and its finances.
Author: Alan L. Gustman Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
A structural econometric model of retirement of dual-career couples is specified and estimated with panel data from the National Longitudinal Survey of Mature Women. A coincidence of spouses retiring together, despite the younger ages of wives, suggests explicit efforts at coordination. The estimates suggest that one reason is a correlation of tastes for leisure. More important, each spouse, and perhaps husbands in particular, values retirement more once their spouse has retired. The opportunity set accounts for peaks in the retirement hazards of each spouse individually but not for peaks in the simultaneous retirement of both spouses.
Author: Alan L. Gustman Publisher: ISBN: Category : Early retirement Languages : en Pages : 84
Book Description
This paper estimates reduced form retirement and wealth equations, and analyzes the relationship between them. Data are from the first four waves of the longitudinal Health and Retirement Study, individuals born from 1931 to 1941. Single equation retirement models relate the probability of retiring to forward looking measures of changes in the values of social security and pension benefits when retirement is postponed. Such simple models suggest that if the social security early retirement age were to be raised or abolished, more people would retire earlier rather than later. Our work analyzes the reasons for such counter intuitive predictions, and discusses the need to analyze these policies in the context of a structural model of retirement and wealth. To improve retirement analysis, we develop the premium value, a measure of the future value of pensions and social security that better reflects the accrual of benefits under defined contribution plans. We also introduce a new definition of retirement to blend information on objective hours worked with subjective self reports of retirement status. Our findings also explore the effects of social security incentives on partial retirement, and consider the importance of partial retirement in any study relating social security to retirement behavior.
Author: Neha Bairoliya Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper examines the role of the shift in pension plans -- from Defined Benefit to Defined Contribution -- in explaining the recent increase in labor supply of older workers. A structural model of consumption, savings, Social Security, and pension plan heterogeneity is estimated using data from the Health and Retirement Study. Model simulations indicate that changes in pension plan composition can explain 10% to 30% percent of the recent increase in labor force participation of the age group 65-69, while changes in Social Security rules can explain less than a quarter of the increase in labor supply for this group.
Author: Gary S. Fields Publisher: ISBN: Category : Retirement age Languages : en Pages : 44
Book Description
This paper examines how the structure of earnings and pension opportunities affects retirement behavior. We use a life cycle model of labor supply, paying special attention to the institutional features of private pensions and Social Security benefits. This theoretical formulation is used to develop comparative dynamic pre- dictions and to guide empirical modeling. Data from a new survey of workers and their income alternatives are used to implement the empirical model. Along the way, we highlight a number of interesting and little known facts about older workers' income. Contrary to popular opinion we find that private pensions are not always actuarially neutral; Social Security benefits do not typically decline (in present value terms) the longer retirement is deferred; and for many people, retirement income approaches and even exceeds net labor income. On the basis of empirical estimates of retirement parameters, we conclude that (1) people with higher base incomes retire earlier, and (2) those who have more to gain by postponing retirement, retire later. These findings are relevant to proposed reforms of the Social Security system as well as pension programs.
Author: Thomas L. Steinmeier
Author: Thomas L. Steinmeier
Author: Alan L. Gustman
Author: John Bound
Author: Alan L. Gustman
Author: Alan L. Gustman
Author: Alan L. Gustman
Author: Alan L. Gustman
Author: Alan L. Gustman
Author: Neha Bairoliya
Author: Gary S. Fields