Advances in the Economics of Aging (National Bureau of by David A. Wise

By David A. Wise

This quantity offers leading edge examine on problems with value to the health and wellbeing of older people: exertions industry habit, 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 impression on retirement of the supply of continuation insurance merits; and the impact of the potential cost method (PPS) on emerging Medicare bills. additionally thought of are the results of future health 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 retailer and consume.Two ultimate experiences use simulations that describe the consequences of stylized monetary versions of habit one of the aged. This well timed quantity could be of curiosity to someone occupied with the economics of getting older.

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Some workers have such strong tastes for unconventional hours that they are willing to work off hours even if their wages are less. Some services such as bus service and entertainment must be produced during off hours. The firm will desire to use its capital stock during off hours: when the capital-labor ratio is high and team production is important, a firm will want to have several complete teams of workers to use the capital stock continuously. Apparently not enough workers want to work off hours that a complete team can be assembled at the normal wage: overtime pay has to be paid.

8Full-time work tends to be full-year work: in the 1969 RHS 36% of men said they worked two thousand hours, almost all the rest worked more than two thousand hours, except for 19% who did not work at all. Economic theory and common sense say that it is not credible that almost all workers would freely choose similar hours per week and per year: variation in assets, wage rates, family circumstances, and tastes will cause variation in desired hours and, hence, in observed hours. 3% of workers said they were on flextime (Mellor 1986).

Apparently this is often a management strategy: in a survey of six programs that form pools of labor from retirees, Paul (1987) found that they all restricted the number of hours to less than one thousand. The general attitude of the managers who were surveyed was that “if the 1000-hour rule were eliminated, their organizations would permit part-time personnel, particularly retirees, to work more hours” (172). It is difficult to know how much of this is simply self-serving, but because of the costs involved, I believe it should be taken seriously.

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