May 2022
12May

Impact of financial investment on the individual’s confidence of happy retirement life

By Yan-Leung Cheung, Billy S C Mak, Hao Shu & Weiqiang Tan The study examines the impact of financial investment on the individual’s confidence in happy retirement life using data from 735 respondents in the Bank Consortium Holding Limited (BCT) Public Opinion Survey on Retirement Happiness in 2017. The result shows that holding the investment portfolio with savings and risky assets is positively and significantly correlated with the individual’s confidence of happy retirement life, and this relationship is more pronounced...

May 12, 2022
Articles, Investment, Pension design, , ,
Read more...
What Share of Noncovered Public Employees Will Earn Benefits that Fall Short of Social Security?
12May

What Share of Noncovered Public Employees Will Earn Benefits that Fall Short of Social Security?

By Jean-Pierre Aubry, Siyan Liu, Alicia H. Munnell, Laura Quinby & Glenn Springstead Social Security is designed to serve as the base of retirement support, to be supplemented by employer-sponsored plans. However, approximately one-quarter of state and local government employees – currently, around 5 million workers annually – are not covered by Social Security on their current job. Federal law allows these noncovered workers to remain outside of Social Security if their state or local plan provides comparable benefits. Since...

May 12, 2022
Articles, Pension design, System Characterization, , ,
Read more...
Do Pensions Reduce Debt?
12May

Do Pensions Reduce Debt?

By Wei Chen This paper estimates the causal impact of receiving pension payments on debt behavior among older adults, with a natural experiment around China's New Rural Pension Scheme (NRPS), one of the world's largest social pension programs. Using a fuzzy difference in discontinuity research design and four waves of the China Health and Retirement Longitudinal Survey (CHARLS), I find that the introduction of the NRPS reduced debt among older adults, and increased their ability to shield themselves against shocks,...

May 12, 2022
Articles, Pension design, , ,
Read more...
05May

Assessing Heterogeneity in the Health Effects of Social Pensions Among the Poor Elderly: Evidence from Peru

By Noelia Bernal Lobato, Javier Olivera & Marc Suhrcke This paper exploits the discontinuity around a welfare index of eligibility to assess the heterogeneous health impacts of Peru's social pension program Pension 65, which focuses on elderly poor individuals. The heterogeneity is analysed in terms of the treatment exposure (short vs long run), the accessibility to health care infrastructure (near vs distant facilities), and gender. We find improvements in anaemia, mortality risk markers, cognitive functioning, mental health, and self-reported health....

May 5, 2022
Articles, Pension design, System Characterization, , , , ,
Read more...
The LGBTQ+ Gap: Recent Estimates for Young Adults in the United States
05May

The LGBTQ+ Gap: Recent Estimates for Young Adults in the United States

By Marc Folch This article provides recent estimates of earnings and mental health for sexual and gender minority young adults in the United States. Using data from a nationally representative sample of bachelor’s degree recipients, I find a significant earnings and mental health gap between self-identified LGBTQ+ and comparable heterosexual cisgender graduates. On average, sexual and gender minorities experience 22% lower earnings ten years after graduation. About half of this gap can be attributed to LGBTQ+ graduates being less likely...

May 5, 2022
Articles, Labor Market, System Characterization, , ,
Read more...
05May

Effect of Pensions on the Capital Market

By Sang Wook NAM This study analyzes the impact of public and private pensions on the capital market to examine the empirical arguments for the need for pension development. To this end, we conduct an empirical analysis of the effect of pension assets on the capital markets in 17 OECD member countries. The methods comprise static and dynamic panel analyses, which are conducted in parallel based on panel data on the stock and bond markets and the asset sizes of...

May 5, 2022
Articles, Investment, Pension Management, , ,
Read more...

April 2022

The Causal Effects of Place on Health and Longevity
28Apr

The Causal Effects of Place on Health and Longevity

By Tatyana Deryugina & David Molitor Life expectancy varies substantially across local regions within a country, raising conjectures that place of residence affects health. However, population sorting and other confounders make it difficult to disentangle the effects of place on health from other geographic differences in life expectancy. Recent studies have overcome such challenges to demonstrate that place of residence substantially influences health and mortality. Whether policies that encourage people to move to places that are better for their health...

April 28, 2022
Aging, Articles, , ,
Read more...
The New Corporate Governance
28Apr

The New Corporate Governance

By Oliver D. Hart & Luigi Zingales In the last few years, there has been a dramatic increase in shareholder engagement on environmental and social issues. In some cases shareholders are pushing companies to take actions that may reduce market value. It is hard to understand this behavior using the dominant corporate governance paradigm based on shareholder value maximization. We explain how jurisprudence has sustained this criterion in spite of its economic weaknesses. To overcome these weaknesses we propose the...

April 28, 2022
Articles, Investment, Pension Management, , , , ,
Read more...
Environmental, Social and Governance Considerations in Pension Plans
28Apr

Environmental, Social and Governance Considerations in Pension Plans

By Paul Williams & Elizabeth Harker Speaking at the United Nations Climate Change Conference ("COP26") in October 2021, the UK Secretary of State for Work and Pensions, Thérèse Coffey, said that pension schemes can become a "superpower" in fighting climate change and propelling the world to net zero. But to what extent does the legal landscape within which pension schemes operate allow them to perform this role, and indeed to what extent should they be performing this role? Here in the...

April 28, 2022
Articles, Investment, Pension Management, , ,
Read more...
Movements In and Out of Poverty at Older Ages: Evidence from the HRS
14Apr

Movements In and Out of Poverty at Older Ages: Evidence from the HRS

By Robert L. Clark, Annamaria Lusardi & Olivia S. Mitchell The objective of this paper is to determine Americans’ mobility patterns into and out of poverty in their later years. We track how older adults enter into and exit from poverty using the most extensive longitudinal survey on older Americans currently available, the Health and Retirement Study (HRS). Using over 20 years of data from the HRS, we show that the conditional probability of escaping poverty diminishes as the number...

April 14, 2022
Aging, Articles, System Characterization, , ,
Read more...