Optimal retirement with unemployment risks

Jang, Bong‐Gyu; Park, Seyoung; Rhee, Yuna

doi:10.1016/j.jbankfin.2013.05.017

Cited by 25 publications

(8 citation statements)

References 22 publications

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“…Aligned with this, individual‐level studies predominantly define laid off personnel as those who are involuntarily unemployed (Datta et al, 2010; Wood et al, 2013). Researchers focus on the impact of layoffs from the perspectives of psychology (Classen & Dunn, 2012; Gowan, 2014; Howe et al, 2012), finance (Zdaniuk & Chhinzer, 2019), labour economics (Chhinzer & Ababneh, 2010; Jang, Park, & Rhee, 2013; Wood et al, 2013), and labour relations (Gowan, 2014; María Arranz & García‐Serrano, 2014), assuming that the individual employee has no decision‐making power in the layoff process (i.e., that they have been involuntarily laid off).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Contrasting voluntary versus involuntary layoffs: Antecedents and outcomes

Chhinzer

2020

Can J Adm Sci

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Although organizations execute layoffs to adapt their labour force to changing business demands, there is no existing empirical assessment of antecedents and outcomes associated with varying layoff implementation techniques (voluntary vs. involuntary layoffs). Accordingly, this research modifies a turnover framework to empirically evaluate the impact of work‐related and non‐work–related variables on layoff decisions, for both voluntary and involuntary layoff implementation techniques. Management and employee dyads in three companies assessed 976 employee profiles using a policy‐capturing approach. Management decisions regarding involuntary layoffs are influenced most by the employees' job performance, job satisfaction, and job commitment. Comparatively, employee decisions regarding voluntary layoffs are influenced by severance pay, job satisfaction, job performance, and family size. Theoretic and management implications are discussed.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Contrasting voluntary versus involuntary layoffs: Antecedents and outcomes

Chhinzer

2020

Can J Adm Sci

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“…Lacomba and Lagos (2006) also make use of the utility of leisure while retired and remark that if the contribution rates are modified by a change in the dependency ratio, a later retirement is preferred. Other studies in which the utility of leisure is employed include Samwick (1998); Sheshinski (1977); Hansen and Lonstrup (2009) and Jang et al (2013).…”

Section: Introductionmentioning

confidence: 99%

Retirement Ages by Socio-Economic Class

Arnold¹,

Jijiie²

2020

Risks

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We are interested in defining the optimal retirement age by socio-economic class, given a Defined Benefit and a Notional Defined Contribution scheme. We firstly implement a utilitarian framework. Depending on the risk aversion coefficients and individual time preference factors, the results differ significantly. Since this approach is individualistic, with no consensus in the existing literature on what values these parameters should take, it is not suitable to be used by policy makers. Therefore, we provide an alternative based on two accounts. We look for the retirement age allowing the accumulated value, at the last age with survivors, of the pensions received under each system, held in one account, to be close in value to the accumulated amount should the actuarially fair pension be paid, representing the second account. Our approach results in setting a lower retirement age for lower socio-economic classes and a higher retirement age for wealthier individuals.

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“…This was complemented by a more general research exploring ways to optimize and improve the efficacy of the UI systems (also in terms of reducing government expenditure), using incentives such as a decreasing benefit throughout the unemployment spell, in conjunction with sanctions and workfare (see [13,17,20,26,27], to cite but a few). A related strand of research is the study of optimal retirement strategies in the presence of involuntary unemployment risks and borrowing constraints [6,7,14,21,40].…”

Section: Introductionmentioning

confidence: 99%

Optimal Stopping and Utility in a Simple Modelof Unemployment Insurance

Anquandah

Bogachev

2019

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Managing unemployment is one of the key issues in social policies. Unemployment insurance schemes are designed to cushion the financial and morale blow of loss of job but also to encourage the unemployed to seek new jobs more pro-actively due to the continuous reduction of benefit payments. In the present paper, a simple model of unemployment insurance is proposed with a focus on optimality of the individual's entry to the scheme. The corresponding optimal stopping problem is solved, and its similarity and differences with the perpetual American call option are discussed. Beyond a purely financial point of view, we argue that in the actuarial context the optimal decisions should take into account other possible preferences through a suitable utility function. Some examples in this direction are worked out.

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Optimal retirement with unemployment risks

Cited by 25 publications

References 22 publications

Contrasting voluntary versus involuntary layoffs: Antecedents and outcomes

Contrasting voluntary versus involuntary layoffs: Antecedents and outcomes

Retirement Ages by Socio-Economic Class

Optimal Stopping and Utility in a Simple Modelof Unemployment Insurance

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