2017

The Effect of Physical and Cognitive Decline at Older Ages on Work and Retirement: Evidence from Occupational Job Demands and Job Mismatch

WP 2017-372, UM17-10

As workers age, their physical and cognitive abilities tend to decline. This could lead to a mismatch between workers’ resources and the demands of their jobs, restricting future work. We use longitudinal data from the Health and Retirement Study (HRS)…

Marriage-related Policies in an Estimated Life-cycle Model of Households’ Labor Supply and Savings for Two Cohorts

WP 2017-371, UM17-01

In the United States, both taxes and old age Social Security benefits explicitly depend on one’s marital status. We study the effects of eliminating these marriage-related provisions on the labor supply and savings of two different cohorts. To do so,…

The Effect of Affordable Care Act Medicaid Expansion on Post-Displacement Labor Supply among the Near-Elderly

WP 2017-370, UM17-17

Expanded health-insurance coverage under the Affordable Care Act (ACA) provides alternative channels to obtain health-insurance coverage outside employment, which in theory may affect whether people want to work, how much they work, and the sorting of individuals into jobs. Although…

Long-Term Effects of Leaving Military Service in a Weak Economy

WP 2017-369, UM17-09

Previous research finds negative effects in the short and medium term for those who initially entered the labor force during weak labor markets. Discerning the effects of initial market conditions is difficult as young workers may attempt to time their…

Parents with an Unemployed Adult Child: Labor Supply, Consumption, and Savings Effects

WP 2017-368, UM17-18

The risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children…

Understanding Earnings, Labor Supply, and Retirement Decisions

WP 2017-367, UM17-03

We develop and estimate a model in which individuals make decisions on consumption, human capital investment, labor supply, and retirement. Unlike all previous work, our model allows both an endogenous wage process (which is typically assumed exogenous in the human…

Work-Life Balance and Labor Force Attachment at Older Ages

WP 2017-366, UM17-11

We use data from the Health and Retirement Study to examine the role of work-life balance (WLB) as a nonmonetary determinant of retirement transitions, conditional on job attributes such as hours of work, compensation and benefits. We show that low…

Alternative Measures of Noncognitive Skills and Their Effect on Retirement Preparation and Financial Capability

WP 2017-365, UM17-12

Social science, more than ever, is drawing upon the insights of personality psychology. Though researchers now know that noncognitive skills and personality traits, such as conscientiousness, grit, self-control, or a growth mindset could be important for life outcomes, they struggle…

The Impact of Health on Labor Supply Near Retirement

WP 2017-364, UM17-02

Estimates of effect of health on employment differ from study to study due to differences in methods, data, institutional background and health measure. We assess the importance of these differences, using a unified framework to interpret and contrast estimate for…

Adjusting the Payroll Tax to Promote Longer Careers

WP 2017-363, UM16-01

This paper analyzes a prospective Social Security reform that a number of authors have suggested, namely a payroll tax cut targeted on households near retirement. Our approach uses simulations of a life-cycle model, which we estimate from panel data. The…