Heterogeneity in consumers’ income and pension expectations

Bissonnette, Luc; Soest, Arthur van

doi:10.1017/s1474747215000207

Cited by 11 publications

(4 citation statements)

References 35 publications

(48 reference statements)

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“…Average beliefs that either type of reform will occur rose sharply over the sample period, from about 45% in 2004 to nearly 60% in 2013, possibly reflecting concerns over public finances related to the 2008 banking collapse. 1 This pattern is in line with the results found in other studies measuring probabilistic expectations about pension uncertainty (e.g., Delavande and Rohwedder 2011;Guiso, Jappelli, and Padula 2013;Bissonette and van Soest 2015). Importantly, pension reform expectations at the individual level are systematically associated with economically salient subsequent behavior, such as employment, parental care, and financial transfers, suggesting they are relevant to older workers' decisions.…”

Section: Introductionsupporting

confidence: 79%

Policy Uncertainty and Information Flows: Evidence from Pension Reform Expectations

et al. 2019

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Section: Introductionsupporting

confidence: 79%

Policy Uncertainty and Information Flows: Evidence from Pension Reform Expectations

et al. 2019

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“…We sampled individuals between 25 and 64 years of age ( M age = 36.46, SD = 10.44). This age range is frequently used when studying the working population (e.g., Bissonnette and van Soest, 2015 ), our population of interest. In this age range, most individuals will no longer be studying, and are not retired yet.…”

Section: Methodsmentioning

confidence: 99%

Coping With Governmental Restrictions: The Relationship Between Stay-at-Home Orders, Resilience, and Functional, Social, Mental, Physical, and Financial Well-Being

2021

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The coronavirus outbreak has led to abrupt changes in people’s daily lives as many state governments have restricted individuals’ movements in order to slow the spread of the virus. We conducted a natural experiment in the United States of America in April 2020, in which we compare responses from states with “stay-at-home orders” (3 states) and no such orders (6 states). We surveyed 458 participants (55.6% female, age range 25–64, Mage = 36.5) and examined the effects of these government-imposed restrictions on social, mental, physical, and financial well-being as well as the mediating role of resilience. Structural equation modeling reveals that resilience buffers stay-at-home orders’ potential side-effects on well-being. Specifically, individuals living in states with stay-at-home orders report lower functional well-being than individuals living in states without such orders, which negatively relates to resilience. Resilience in turn is associated with higher social, mental, physical, and financial well-being. Thus, resilience can be seen as an effective means of buffering stay-at-home orders’ potential negative effects on the components of well-being. Our results indicate the central role of resilience, which is crucial in dampening the effects of stay-at-home orders on well-being. Following our results, governments and policymakers should focus their efforts on strengthening individuals’ resilience, which is a key predictor of social, mental, financial, and physical well-being.

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“…4 Our paper also relates to a broader literature that analyzes the implications of retirement benefits in the design of pension systems. A stream of this literature evaluates the role of income replacement on the retirement decision (Asch, Haider and Zissimopoulos, 2005;Van Soest and Vonkova, 2014;Bissonnette and Van Soest, 2015;Manoli and Weber, 2016;Biasi, 2019); another stream addresses the interaction between retirement and labor supply (Blundell, French and Tetlow, 2016, offer an excellent summary); and a third stream discusses dynamic optimization problems in labor supply responses to the Social Security Earnings Test (Baker and Benjamin, 1999;Friedberg, 2000;Song and Manchester, 2007;Haider and Loughran, 2008;Gelber et al, 2020). We contribute to this literature by providing evidence of responses to dynamic incentives, studying an alternative source of potential effects on labor supply, and highlighting another channel that could potentially affect retirement timing choices.…”

Section: Preview Of Resultsmentioning

confidence: 99%

Dynamic Incentives in Retirement Earnings-Replacement Benefits

Dean¹,

Fleitas

Zerpa

2024

Review of Economics and Statistics

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We analyze dynamic incentives in pension systems created by the use of a small set of final years of earnings to compute benefits. Using social security records and household surveys from Uruguay, we show that self-employed workers and some employees of small firms respond to these incentives by increasing reported earnings in the benefit calculation window. We find evidence that suggests that these responses are explained by changes in earnings reporting and not in total earnings or labor supply. Backof-the-envelope calculations indicate that this behavior increases the cost of pensions by about 0.2% of the GDP.

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Heterogeneity in consumers’ income and pension expectations

Cited by 11 publications

References 35 publications

Policy Uncertainty and Information Flows: Evidence from Pension Reform Expectations

Policy Uncertainty and Information Flows: Evidence from Pension Reform Expectations

Coping With Governmental Restrictions: The Relationship Between Stay-at-Home Orders, Resilience, and Functional, Social, Mental, Physical, and Financial Well-Being

Dynamic Incentives in Retirement Earnings-Replacement Benefits

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