Labor Relations Commons^™

Restructuring Social Security: How Will Retirement Ages Respond?, Gary S. Fields, Olivia S. Mitchell

Gary S Fields

[Excerpt] Budgetary pressures on the Social Security system have increased in recent years, prompting a variety of proposals to restructure the U.S. retirement income program. Most of these proposals ignore the possibility that the retirement patterns of older workers are likely to respond to changes in the incentives to retire. This chapter presents two important pieces of information for policymakers. First, we provide previously unavailable evidence on how changes in the structure of Social Security benefits would alter the economic incentives to retire at different ages. Second, we compute how retirement patterns would change in response to altered incentives to …

Rewards For Continued Work: The Economic Incentives For Postponing Retirement, Olivia S. Mitchell, Gary S. Fields

Gary S Fields

This chapter develops empirical measures of the economic incentives for deferred retirement among older workers. Using a new data file on pay and pensions, we construct intertemporal budget sets reflecting income available to workers at alternative retirement ages. The analysis explores how continued labor force attachment is rewarded in terms of net earnings, Social Security benefits, and private pension income.

The Effects Of Social Security Reforms On Retirement Ages And Retirement Incomes, Gary S. Fields, Olivia S. Mitchell

Gary S Fields

Recent changes legislated in the U.S. Social Security system have altered the economic incentives to work and retire. Some older workers will respond to these new incentives by retiring at different ages. This paper evaluates the signs and magnitudes of these responses. Four specific changes in the structure of Social Security benefits are examined: raising the normal retirement age, delaying the cost-of-living adjustment, lowering early retirement benefits, and increasing late retirement payments. Behavioral parameters are estimated using an ordered logit model of retirement ages; these are used to predict how retirement behavior might respond to each of the four reforms. …

Poverty Measures And Anti-Poverty Policy, Francois Bourguignon, Gary S. Fields

Gary S Fields

[Excerpt] Amartya Sen has made fundamental contributions to the study of distributional aspects of economic growth and decline. Among his pathbreaking works are his lectures on the economics of inequality (Sen, 1973), his article on the axiomatics of poverty measurement (Sen, 1976), and his book on anti-poverty policy in the context of famines (Sen, 1981). This paper is concerned with one of these areas, namely, the measurement of poverty and the implications for anti-poverty policy. In the 1960's and 1970's those who were working in the poverty field held a number of somewhat incompletely articulated views as to the extent …

Estimating The Effects Of Changing Social Security Benefit Formulas, Gary S. Fields, Olivia S. Mitchell

Gary S Fields

[Excerpt] The U.S. Social Security system faces serious financial difficulties in both the short and the long run. The short-run problem is that the system has very meager financial reserves. In the long run—after the year 2010, when the post-World-War-II baby-boom generation reaches retirement age—the financial problems of Social Security will intensify because of population aging and the consequent decline in the ratio of workers to retirees.

These problems have led to proposed reforms aimed at assuring the financial stability of the system. The question addressed here is: what effects would these reforms have on three variables—retirement ages, retirement incomes, …

Employment Generation And Poverty Alleviation In Developing Economies, Gary S. Fields

Gary S Fields

[Excerpt] We know well that the East Asian economies have achieved higher economic growth rates than those in any other region of the world and that production for world markets has featured as a hallmark of the East Asian successes. This paper has three purposes: first, to present comparative data showing that the rates at which employment opportunities improve and poverty is reduced mirror countries' differential growth experiences; second, to examine differences in labour market institutions, demonstrating that those in East Asia have similarities more likely to lead to higher output performance and shared improvements in living conditions; and third, …

The Impact Of Government Policies On Urban Employment In Small Economies, Gary S. Fields

Gary S Fields

[Excerpt] Most of the policies intended to affect urban employment are not specifically employment policies nor are they specifically urban. Rather, the amount of urban employment, the composition of that employment, and the returns from it are determined by a whole host of policies. To review them all in a short paper is an impossible undertaking. The criterion by which I decided which policies to consider is policy-relevance, asking which set of policies is apt to have the largest impact on employment.