June 2022
30Jun

Spillover Effects of Old-Age Pension Across Generations: Family Labor Supply and Child Outcomes

By Katja Kaufmann, Yasemin Özdemir & Han Ye We study the impact of grandparental retirement decisions on family members' labor supply and child outcomes by exploiting a Dutch pension reform in a fuzzy Regression Discontinuity design. A one-hour increase in grandmothers' hours worked causes adult daughters with young children to work half an hour less. Daughters without children, with older children and sons/daughters-in-law are not affected. We show important long-run impacts on maternal labor supply and on the child penalty....

June 30, 2022
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30Jun

Does Informality Hold the Key to Growth and Stability?

By Meghna Dutta This paper attempts to analyse the impact of a prevailing informal sector on the dynamics of growth and inflation in developing economies. The high growth rates posited by most developing economies in the presence of a huge informal sector suggest that this sector might not be the malefactor as often indicated. The main results show that the informal economy not only contributes to economic growth but the firms also help to significantly reduce inflation by generating employment...

June 30, 2022
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24Jun

Financial Literacy, Gender and Investment Choices

By Xin Wen, Zhiming Cheng & Massimiliano Tani Over the past thirty years Chinese households have enjoyed substantive increases in income and savings and witnessed a rapidly developing financial market offering investment choices and risks away from bank deposits – the traditional form of financial investment. We explore whether this evolving landscape has been advantageous to every investor or mainly those with better financial literacy, by focusing on the portfolio decisions of the household head, by gender. Using data from...

June 24, 2022
Articles, Investment, Pension design, Savings, , ,
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24Jun

The Effects of the Minimum Pension Reform in a Defined Contribution Pension System: The Case of Chile

By Jorge Sabat Using longitudinal data on roughly 16,800 low-income workers, I estimate the effects of a reform that introduced a solidarity pillar on the Chilean defined contribution pension system. I specifically test for a negative effect on the propensity to save for retirement that would have arisen from the disincentives caused by the introduction of an implicit tax on pension savings, as predicted by a theoretical life-cycle model. Empirically, I document a negative and significant effect on the propensity...

June 24, 2022
Articles, Savings, , , ,
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24Jun

Would the Securing a Strong Retirement Act Secure More Retirement Equity?

By Albert Feuer On March 29, 2022 the House approved H.R. 2954 that is titled the Securing a Strong Retirement Act of 2022 (the SECURE Act 2.0) by a vote of 414-5. On May 26, 2022, a discussion draft of the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE & SHINE) Act of 2022 was released by the Senate Health, Education, Labor, and Pensions Committee Chair Senator Patty Murray (D-WA), and Ranking Member Senator Richard...

June 24, 2022
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17Jun

Would the Securing a Strong Retirement Act Secure More Retirement Equity?

By Albert Feuer On March 29, 2022 the House approved H.R. 2954 that is titled the Securing a Strong Retirement Act of 2022 (the SECURE Act 2.0) by a vote of 414-5. On May 26, 2022, a discussion draft of the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE & SHINE) Act of 2022 was released by the Senate Health, Education, Labor, and Pensions Committee Chair Senator Patty Murray (D-WA), and Ranking Member Senator Richard...

June 17, 2022
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17Jun

LGBT CEOs and stock returns: Diagnosing rainbow ceilings and cliffs

By Savva Shanaev, Arina Skorochodova & Mikhail Vasenin This study is the first to investigate the implications of lesbian, gay, bisexual, and transgender chief executive officers (LGBT CEOs) for stock performance, using an exhaustive sample of 26 LGBT publicly listed company CEOs since 2000 to document statistically and economically significant financial outperformance of LGBT-led firms. Stocks of companies with openly LGBT CEOs generate a monthly alpha of 0.69%-1.08%, robust to portfolio weighting schemes, estimation frequency, multi-factor asset-pricing models, factor multicollinearity,...

June 17, 2022
Articles, Investment, Pension Management, , , ,
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17Jun

Do Retirees Want to Consume More, Less or the Same as they Age?

By Anqi Chen & Alicia H. Munnell Whether households prefer a constant, increasing, or decreasing path of consumption in retirement has important implications for our understanding of retirement adequacy. Financial planners and researchers often assume that retirees would like to maintain a constant standard of living. Similarly, Social Security benefits are based on the premise that people want steady inflation-adjusted benefits. However, several studies suggest that retired households actually decrease their consumption over time. This brief, which reports the results of...

June 17, 2022
Articles, Pension design, System Characterization, ,
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10Jun

LGBTQ and Finance

By Sanjukta Brahma, Konstantinos Gavriilidis, Vasileios Kallinterakis, Thanos Verousis & Mengyu Zhang Recent changes in workplace and corporate board diversity policies and a series of court rulings have signalled a fundamental change in the treatment of lesbian, gay, bisexual, transgender and queer (henceforth LGBTQ) people in the corporate world. In this paper, we survey the burgeoning literature on the role of sexual orientation in finance. We show that LGBTQ-friendly policies affect organizational outcomes and enhance the quality of corporate governance....

June 10, 2022
Articles, Labor Market, System Characterization, ,
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09Jun

Investment Choice in Collectivised Pensions

By John Armstrong & Cristin Buescu Investment choice is a central theme of UK pension policy. This paper shows how a collective pension fund can be managed in a manner that allows individuals to choose how their pension is invested and their schedule of pension payments. The potential benefit to investors of such a fund is quantified on the assumption that they choose to invest optimally. For our indicative choice of individual we find that they would need to invest...

June 9, 2022
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