Search results

The purpose of this paper is to investigate the extent to which the distance to retirement affects low employment rates among European older workers, taking into account a key but often neglected determinant: health status.

To begin, the study amends McCall’s job search model, in which the job search behavior is treated as age dependent. Agents are heterogeneous according to two attributes: distance to retirement and health. The authors complete this theoretical analysis with an econometric analysis based on a French survey.

This model leads to clear predictions, such that the closer the retirement, the greater the reservation wage and the lower people’s search effort. Older workers also exhibit lower exit rates from unemployment, an effect that gets enhanced by health problems. The empirical work, based on a French survey, confirms the existence of a distance effect but also puts the greater impact of health status into perspective. The distance effect explains only part of the puzzle of older workers’ employment.

This paper proposes a theoretical and empirical analysis of the retirement decisions. It studies the distance effect but taking into account a neglected factor in the literature: health. Results clearly confirm the distance effect but highlight the reader role of health in retirement decisions.

Although saving for retirement is critical, many people are reluctant to contribute money now in anticipation of a future event, namely their retirement. This study aims to investigate the interaction effect between message frame and message appeal on individual preparedness for retirement, specifically in terms of an individual’s willingness to contribute to retirement savings.

Across three studies, the authors show that message frames with a gain-orientation are more persuasive when self-oriented rather than oriented towards socially distant others. In Study 1, the authors use a 2 (gain-loss message frame) × 3 (self, close-other, distant-other message appeal) experimental design with ad copy manipulating the scenarios. In Study 2, the authors replicate and extend Study 1 to validate the findings. In Study 3, the authors overlay life-stage to determine how consumers differ in terms of their willingness to contribute to retirement.

Across the studies the authors find that message frame and message appeal influence consumer preparedness for retirement. The authors investigate these effects in terms of willingness to contribute to retirement savings (Studies 1–3) as well as satisfaction with retirement savings, anticipated retirement enjoyment, positive emotions and negative emotions (Studies 1 and 2).

While a substantive amount of research has been devoted to retirement planning, gaps remain as to the efficacy of communication message strategies on influencing retirement preparedness. This research seeks to contribute towards this literature stream by uncovering the ways in which individuals can be encouraged to contribute towards retirement planning.

The purpose of this paper is to explore the relationship between different categories of person–environment (P–E) fit and two types of retirement intentions (i.e. full retirement and bridge employment).

Data were collected from a convenience sample of 357 executives aged 50 and over, employed in French private sector companies. Hypotheses were tested using structural equation modeling.

Perceptions of value congruence at vocational level and needs and supplies fit at organizational and job levels were positively related to the intention to hold bridge employment after retirement. The fit between older worker’s abilities and job demands was positively related to the two types of retirement intentions.

The complexity of retirement transition is taken into account with the introduction of two types of retirement intentions. P–E fit is shown to be an antecedent of career intentions after retirement.

The purpose of this paper is to isolate and evaluate the causal effect of the changes in eligibility criteria on labor force participation (LFP) and exit to retirement of the cohorts affected by the reform that canceled most of the early pensions in Poland in 2009. At the individual level the reform created a huge discontinuity in treatment of different generations.

The authors rely on Polish Labor Force Survey and employ regression discontinuity design to evaluate the change in participation subsequent to the eligibility reform among the treated cohorts.

The authors find a statistically significant, but economically small discontinuity at the timing of the reform. The placebo test shows no similar effects in earlier or later quarters. Yet, the pure treatment effects are insignificant in vast majority of the specifications.

There are some limitations of the data used in the research. It does not cover total population and some panel attrition can be expected. Authors also needed to cope with the lack of required details in survey questions. The main limitation of the method lies in the measurement of the immediate (short-term) effects while in many cases people require more time that 1–2 quarters for the decision after policy change.

The reduction of outflows to retirement was much less pronounced than could have been expected, largely due to already relatively lower propensity to retire early.

There are two main policy implications of the study. First, constraining the pension eligibility criteria for retirement are frequently opposed by social actors. It is often considered that early retirement is a privilege – awarded on a basis of occupation or even simply employment in an industry. In many countries – e.g. France, Italy, Germany – attempts to make the eligibility criteria more strict resulted in general strikes and Poland was no exception from this rule. If treatment effects of the large and radical eligibility reform are small in participation rates and pension take-up rates, then immediate fiscal effects are bound to be small as well, even if in the desirable direction. This may explain why – given the strong social resistance – in many countries eligibility reforms are delayed or narrowed in scope. Second, the economic rationale for strong social resistance to eligibility reforms builds on assuming either a relatively high valuation of leisure time after exiting the labor market or a relatively high subjective valuation of the unemployment risk after passing the early retirement age threshold. If leisure preference is overstated, reducing eligibility may be opposed as such, but eligibility alone is irrelevant for household decision making. Meanwhile, unemployment risk may be mitigated via alternative instruments, such as employment protection legislation, as is the case in Poland. Depending on a specific composition of the two factors in a given country, the effects of the eligibility reforms may be as high as in Switzerland or as low as in Poland.

First, the authors provide an analysis of discontinuities in transitions from activity to retirement, rather than focusing on the labor market status. The panel dimension of the data permits to observe directly the flows into retirement/inactivity, controlling for age and birth cohort. Second, the authors complement a pure discontinuity in cohort analysis with a fuzzy design, because in addition to age eligibility the authors also analyze the effects of changes in occupational eligibility. Third, the authors provide a benchmark for the estimates in the actual quarter of the reform by a series of placebo and conditional specifications. This allows to evaluate the (immediate) size and heterogeneity of the treatment effects. The authors find small effects of age eligibility reduction and effectively no effects of occupational eligibility. Hence, increased LFP of the elderly, observed even prior to the reform, seems to be driven by factors unrelated to early pension eligibility.

The purpose of this paper is to investigate how the structure of both CEO and non-CEO executive compensation affects the overall risk of a firm. The author focuses on the interplay between CEO and non-CEO executive compensation structure.

The author uses a hand-collected pension-database that employs both OLS and two-stage least squares regressions to determine the effects of inside debt on default risk using the distance-to-default framework. The database consists of 8,965 executive-year data points from 272 firms.

This paper accomplishes three major objectives: first, the author presents a significant extension of Sundaram and Yermack (2007) by including non-CEO executives; the author demonstrates how the differences in inside debt between CEO and non-CEO executives are directly related to firm risk; and that funding these pensions via a Rabbi Trust eliminates most of the risk-shifting effects. Firms with the lowest compensation leverage gap between CEO and non-CEO executives were most likely to observe the agency costs associated with high executive leverage. When compensation leverage structures were substantially different, or the pension was pre-funded, these effects are neutralized.

To the best of the author’s knowledge, the first paper addresses the effects of Rabbi Trusts on risk-shifting behavior between both CEOs and non-CEO executives. Further, the author extends Sundaram and Yermack (2007) using a hand-collected database six times larger than the original paper. By focusing on the “leverage gap” between CEOs and non-CEO executives, the author presents unique evidence that underlines the risk dynamics between CEOs and their boards.

In this paper, the authors analyse a 2010 legal reform in the Czech Republic, which allowed retirees to simultaneously receive regular pension benefits and to work on a permanent contract for a period longer than one year. Previously, concurrence of employment and receipt of retirement benefits were only allowed in conjunction with a temporary work contract with a maximum duration of one year.

The authors employ the difference-in-differences method. The authors include only males in the analysis because it is not possible to identify the legal retirement age for women from available data. Men in the workforce 1–3 years prior to the statutory retirement age are in a control group, while men 1–3 years older are in a treatment group.

The authors show that the reform significantly increased the share of permanent contracts held by retirees (by 22.5–27.6 percentage points), though we do not find any aggregate short-term change in employment of retirees. Heterogeneity analysis shows a significant increase in the employment of retirees with only elementary school education (by 17.9 percentage points) and a significant decrease in the number of hours worked by retirees (by 2.5 h weekly for low-educated workers).

The policy conclusion is that the regulation of employment contract does not affect aggregate employment, but may improve employment of low skilled workers.

To the authors’ best knowledge, there are no studies directly analysing motivation of retirees by types of employment contracts. The authors, thus, add to the literature that studies dealing with the general fixed-term versus permanent contracts (Engellandt and Riphahn, 2003) and motivation to work.

The purpose of this paper is to analyse the determinants of hiring and exit rates by age at the firm level and firm-level age segregation in hirings and separations in Finland.

The use Finnish linked employer-employee data from 1990 to 2004. The authors present a decomposition of employment change by age group to disentangle the roles of hirings and exits from factors related to demographics effects. Firm-level analysis is conducted using regression models for the hiring rates and shares of different age groups and for the probability of hiring older employees. Similar models are estimated for the exits of older employees. Segregation is analysed using age segregation curves and Gini indices calculated from them.

The hirings of older (50+) employees have clearly been more segregated at the firm level than the exits or the stock of old employees. Larger firms are more likely to hire older employees, but their hiring rates are lower. However, the probability of having hires or exits of older workers are much higher in large firms. The results are relatively similar for men and women.

The determinants of the probability of hiring older workers and the rate of hiring them, given that the rate is positive, are different and these two processes should be modelled separately. The Gini index of segregation may be misleading when the number of employees per firm is small. Therefore it is useful to compare segregation to a random reshuffle of employees to firms.

Older worker who have become unemployed or who want to change their job need to have more employment opportunities. Labour and pension policies need to be monitored and designed so that there are more incentives for the individual to search for a new job and for the firms to hire older employees.

The authors provide new empirical evidence of age segregation and hiring prospects of older employees. Age segregation has previously been examined in occupations, but the authors extend the analysis to firm-level segregation. The authors suggest a new decomposition of the rate of employment change to the hiring and exit rates and to a cohort effect.

The purpose of this paper is to examine the mediating role of the attitudes toward seeking professional psychological help between career adaptability and active job search behavior of older workers in South Korea.

From a review of related literature, six study hypotheses were developed to test the structural relationship between the variables.

This study identified that attitudes toward seeking professional psychological help mediated the relationship between career adaptability, the value of career coaching and active job search behavior.

A successful job search requires the use of substantial self-control and self-regulation skills, and there can be effective training in all these skills of self-disciplining when older workers can find a high level of value from career coaching programs.

Despite the growing popularity of career support programs, the quality of career coaching programs and participants’ perceived value toward them are critical to illicit positive outcomes of such programs. This study supports this premise by revealing a structural relationship between career adaptability, perceived value of career coaching, attitudes toward seeking professional career help and active job search behavior.