Abstract: this paper estimates the effect of disability insurance receipt on labor supply. Exploiting the effectively random assignment of judges to disability insurance cases, we use instrumental variables to address the fact that those allowed benefits are a selected sample. we find that benefit receipt reduces labor force participation by 26 percentage points three years after a disability determination decision, although the reduction is smaller for those over age 55, college graduates, and those with mental illness. We also find that over 60% of those denied benefits by an administrative law judge are subsequently allowed benefits within 10 years, showing that most applicants apply, re apply, and appeal until they get benefits. Abstract: in the year immediately following a $1 minimum wage hike, household income rises on average by about $250 per quarter and spending by roughly $700 per quarter for households with adult minimum wage workers. Most of the spending response is caused by a small number of households who purchase vehicles.

Peer Review Articles on Sleep Deprivation

Furthermore, we find that the high spending levels are financed through increases in collateralized debt. Models of consumer behavior that allow for realistic income risk and borrowing against durable goods can partially explain these facts. We discuss whether our results imply that minimum wage hikes can increase aggregate spending.

The spending and debt response to minimum wage hikes with dan aaronson and sumit agarwal , american economic review. Abstract: immediately following a minimum wage hike, household income rises on average by about $250 per quarter and spending by roughly $700 per quarter for households with minimum wage workers. most of the spending response is caused by a small number of households who purchase vehicles. Furthermore, we find that the high spending levels are financed through increases in collateralized debt.

Our results are consistent with a model where households can borrow against durables and face costs of adjusting their durables stock. Abstract: in order to remain fiscally solvent, governments of many countries have reformed their public pension schemes to encourage labor supply at older ages. these reforms include reductions in the generosity of public pensions and reduced penalties for working past the normal retirement age.

In this paper, we consider how reforms to public pension systems affect labor supply over the life cycle. We put the recent empirical evidence on the effect of government pensions on labor supply in a life cycle context, and we present evidence on the effectiveness of tax reforms for stimulating labor supply over the life cycle. our main conclusion is that the labor supply of older workers is responsive to changes in retirement incentives. thus the trend towards lower taxes on older workers in many developed countries is likely to continue to fuel the recent trend towards later retirement. Abstract: should the minimum wage be raised? in ‘the minimum wage and labor market outcomes’, christopher flinn attempts to answer this question.

He uses a search and matching model to show that the answer involves more than knowledge of whether the minimum wage cuts employment. The answer also depends on i how much the minimum wage boosts the pay of those who don’t lose their jobs, ii how the minimum wage impacts the future employment and earnings prospects of those who are without jobs and i how we weight the winners and losers following a minimum wage hike. Abstract: this paper provides an empirical analysis of the effects of employer provided health insurance, medicare, and social security on retirement behavior. Using data from the health and retirement study, we estimate a dynamic programming model of retirement that accounts for both saving and uncertain medical expenses. Our results suggest that medicare is important for understanding retirement behavior, and that uncertainty and saving are both important for understanding the labor supply responses to medicare. half the value placed by a typical worker on his employer provided health insurance is the value of reduced medical expense risk.

Raising the medicare eligibility age from 65 to 67 leads individuals to work an additional 0.074 years over ages 60 69. In comparison, eliminating two years worth of social security benefits increases years of work by 0.076 years. Abstract: this chapter discusses identification of common selection models of the labor market. we start with the classic roy model and show how it can be identified with exclusion restrictions. We then extend the argument to the generalized roy model, treatment effect models, duration models, search models, and dynamic discrete choice models. in all cases, key ingredients for identification are exclusion restrictions and support conditions. Comments on innovative institutions and products for retirement provision in europe by lans bovenberg and theo nijman , in ageing, health, and pensions in europe: an economic and social policy perspective. Previously titled differential mortality, uncertain medical expenditures, and the savings of elderly singles , with mariacristina denardi and john bailey jones , journal of political economy, february 2010, 118 1: 37 75.

Martin Luther King Jr Essay Help

Abstract: this paper constructs a model of saving for retired single people that includes heterogeneity in medical expenses and life expectancies, and bequest motives. We estimate the model using assets and health dynamics of the oldest old data and the method of simulated moments. The risk of living long and requiring expensive medical care is a key driver of saving for many higher income elderly. Social insurance programs such as medicaid rationalize the low asset holdings of the poorest but also benefit the rich by insuring them against high medical expenses at the ends of their lives. With mariacristina denardi and john bailey jones , american economic review, papers and proceedings, may 2009, 99 2 , 110 115. We document that this heterogeneity in life expectancy is large, and we use an estimated structural model to assess its effect on the elderly’s saving.

We find that the differences in life expectancy related to observable factors such as income, gender, and health have large effects on savings, and that these factors contribute by similar amounts. We also show that the risk of outliving one’s expected lifespan has a large effect on the elderly’s saving behavior. Abstract: this paper extends a standard intertemporal labor supply model to account for progressive taxation as well as the joint determination of hourly wages and hours worked.

we show that these two factors can have implications for both estimating labor supply elasticities as well as for using these elasticities in tax analysis. Failure to account for wage hours ties and progressive taxation may cause the hours response to marginal tax rate changes to be understated by 5 to 30 percent for men. Life expectancy, medical expenses, and old age saving with mariacristina de nardi and john b.

With dan aaronson and james macdonald , journal of human resources, summer 2008, 43 3 , 688 720. Using store level and aggregated consumer price index data, we show that restaurant p rices rise in response to minimum wage increases under several sources of identifying variation. We introduce a general model of employment determination that implies minimum wage hikes cause prices to rise in competitive labor markets but potentially fall in monopsonistic environments. Furthermore, the model implies employment and prices are always negatively related. Therefore, our empirical results provide evidence against the importance of monopsony power for understanding small observed employment responses to minimum wage changes. Our estimated price responses challenge other explanations of the small employment response too. We infer the employment response to a minimum wage change by calibrating a model of employment for the restaurant industry.

Whereas perfect competition implies employment falls and prices rise after a minimum wage increase, the monopsony model potentially implies the opposite. We show that estimated price responses are consistent with the competitive model. We place fairly tight bounds on the employment response, with the most plausible parameter values suggesting a 10 percent increase in the minimum wage lowers low skill employment by 2 to 4 percent and total restaurant employment by 1 to 3 percent.