Employment Trajectories Beyond Retirement

Within the political and academic debate on working longer, post-retirement employment is discussed as an alternative to maintain older workers in the labor market. Our article enhances this discussion by studying determinants of transitions into post-retirement jobs within differing work environments of birth cohorts 1940–1942. We estimate proportional subhazard models accounting for competing risks using unique German social security data linked to pension accounts. Our findings suggest that individuals’ preferences to take up post-retirement jobs are not mutually exclusive. Our study provides evidence that taking up post-retirement jobs is related to seeking financial security, continuity, and work ability, suggesting that public policy has to develop target-oriented support through a public policy mix of different measures aligned to the different peer groups in the labor market.     

Social security reform ideas in Japan

Japan has a complex social security system. This article discusses the demographic and economic situation in Japan as background for understanding the setting in which the social security system functions. Japan has a three-pillar system for retirement income. The first pillar is the social security pension plan; the second pillar is the voluntary occupational pension plan; and the third pillar is personal savings, including the personal pension plan. The most important part of the retirement income system is the social security pension plan, which paid benefits accounting for 64% of the total income of elderly households in 1998. The five Employees' Pension Plans are established on a compulsory social insurance basis. Most large Japanese employers have a mandatory retirement age. Over 90% of all employees, including public sector ones, must retire from their career jobs at age 60.     

Social Security Reform Ideas in Japan

Abstract

Japan has a complex social security system. This article discusses the demographic and economic situation in Japan as background for understanding the setting in which the social security system functions. Japan has a three-pillar system for retirement income. The first pillar is the social security pension plan; the second pillar is the voluntary occupational pension plan; and the third pillar is personal savings, including the personal pension plan. The most important part of the retirement income system is the social security pension plan, which paid benefits accounting for 64% of the total income of elderly households in 1998. The five Employees' Pension Plans are established on a compulsory social insurance basis. Most large Japanese employers have a mandatory retirement age. Over 90% of all employees, including public sector ones, must retire from their career jobs at age 60.     

The Effect of the Minimum Wage on Covered Teenage Employment

Unlike previous studies on the minimum wage, which focused on its effect on total teenage employment, we examine its effect on covered employment. A covered job was defined to be one paying the minimum wage or more. Using contemporary wages to classify workers this way may inflate the estimated effect of minimum wages on covered employment. To avoid this bias, covered jobs are identified using a logit procedure run over years in which the minimum age was not increased. We find that minimum wages reduced covered employment significantly more than total employment. We also show that covered employment may be overstated in the period following an increase in the minimum wage.     

Labor Market Penalties for Mothers in Italy

We use a large Italian employer-employee matched dataset to study how motherhood affects women’s working career in terms of labor force participation and wages. We confirm that the probability of exiting employment significantly increases for mothers of pre-school children; however, this is mitigated by higher job quality, human capital endowment and childcare accessibility. Most importantly, the availability of part-time jobs reduces their probability of moving out of the labor force. Women not leaving employment after becoming mothers experience lower wages than women with no pre-school child, and there are no signs of this gap closing 5 years after childbirth. Contrary to previous literature, the wage gap penalty emerges only among women working full-time, thanks to the high protection accorded to part-time jobs in Italy.     

Innenansichten eines Wohlfahrtsmarkts

The 2001 pension reform act (“Riester reform”) has recast old-age security in Germany by placing more emphasis on private provisions. The new policy draws on markets and competitive structures in social welfare, as done earlier in long-term care and in public utilities. In the social welfare sector in Germany, such privatisation mostly goes hand in hand with a far-reaching “social” regulation of markets. Old-age pensions are the most recent case in point. For the first time, financial markets figure as welfare markets. This is done in the politically most sensitive sector of the German welfare state, old-age security. In theoretical terms, we interpret the change as a structural transformation of German “social capitalism”. Empirically, we investigate the structure of the new welfare market and the attitudes of the providers, based on a survey of all providers of private pensions in Germany. The findings include: (1) Markets can produce the welfare good “income security in old-age” only by way of a complex arrangement of three markets – financial markets, pension markets and markets for financial consultancy services. (2) The pension reform of 2001 has given rise to a new welfare market: an old-age pension market as a distinct sub sector of the wider market for financial investment and saving. The pension market constitutes a new field of business, with new actors, new products and new arenas of competition. The new market is created and shaped by politics. (3) The new private pension market combines market principles with welfare state principles. The providers conceive of their business as contributing to social security, and they recognise that the state sustains and structures the market.     

Immigration Policy and Employment Conditions of US Immigrants from Mexico, Nicaragua, and the Dominican Republic1

Prior studies suggest that the passage of the Immigration Reform and Control Act (IRCA) in 1986 signalled a deterioration in the labour market conditions of Mexican migrants. In this paper, we examine whether and how labour market conditions worsened for Dominicans and Nicaraguans after 1986, and the extent to which these shifts were comparable to those experienced by Mexicans. Our analysis relies on a new source of data that offers comparable data across the three national origins. We estimate multivariate models that capture the effects of demographic attributes, human and social capital, migration‐specific human and social capital, legal status, period of trip, national origin, and other controls on the hourly wages earned by household heads and whether they received cash wages on their last US trip. Models with interaction terms reveal significant pre‐ and post‐1986 wage effects, but few differences in these effects between Mexicans and Dominicans or Nicaraguans. In contrast, group differences appear in the risk of cash receipt of wages. Dominicans and Nicaraguans experienced a greater increase in this risk relative to Mexicans pre‐ and post‐1986. Together, these findings depict a broader, negative impact of IRCA on Latino migrant wages than has been documented elsewhere.     

RACIAL INEQUALITY IN MEN'S EMPLOYMENT AND RETIREMENT EARNINGS

Data from the New Beneficiary Study for currently married men who began receiving social security benefits in 1980–1981 indicate that the racial earnings gap is greater in retirement than it was in employment. Racial differences in employment and pension earnings are specified by education and employment status. There is, however, a significant net racial effect in predicting social security earnings. Furthermore, education interacts with race in predicting asset earnings, which constitute the major source of racial inequality in retirement. This analysis highlights not only the enduring problem of poverty for African Americans and Latinos who are "working off the books,' without social security benefits, but also the possibility of a "glass ceiling' that limits access to assets for highly educated nonwhites.     

Family history and pensions: The relationships between marriage,divorce, children,and private pension coverage

This article examines how family history affects the odds of private pension receipt and how these effects vary by sex. Analyses indicated that family history had opposite effects for men and women. Compared to continuously married men, men who were single or divorced had lower odds of pension receipt; having children was associated with higher odds. For women, being single or divorced was associated with higher odds of pension receipt, and having children decreased their odds. After reanalyzing the effects of family history in the context of couples' joint pension receipt, the negative association between pension receipt and children becomes insignificant for women, and being single, divorced, or widowed has negative effects for both men and women. These results suggest that if individuals stay together as a couple, they increase their chances of access to a pension and financial well-being during retirement.     

A multidimensional employment quality index for Brazil, 2002–11

In countries where informal, insecure jobs are widespread, traditional labour market indicators – such as the unemployment rate, labour force participation rate and wages – are not necessarily the most meaningful. The authors use a multidimensional employment quality index to analyse the Brazilian labour market over the period 2002–11, across three dimensions: earnings, formality (measured by the existence of an employment contract and social security contributions) and job tenure. The results show a significant increase in employment quality overall, especially in the years 2009–11, but with considerable differences between wage employees and self‐employed workers, and between industries.     

What is healthy work for women and men? - A case-control study of gender- and sector-specific effects of psycho-social working conditions on long-term sickness absence

The aim of the study was to investigate the relevance of the demand-control model and social support in predicting long-term sickness absence (LTSA). Identifying gender- and sector- (private vs. public) specific patterns was in focus. The study uses a cross-sectional design with a case and a control group. The cases are a sample of 2 327 long-term sick listed (>60 days) and the controls are a Swedish population-based sample of 2 063. Data on sickness absence were retrieved from the Swedish national social insurance registers. Data on health, working and living conditions were gathered through a self-administered questionnaire. The results show that employed women have a notably higher risk for LTSA than employed men. High-strain jobs increase the odds for LTSA among both women and men. Active jobs were also associated with LTSA among women. The study confirms the demand-control model (job strain hypothesis) and social support and their associations with LTSA. However, the job strain hypothesis is more evident in the private sector. Active jobs with high psychological demands and high decision latitude seem to be problematic for many women, especially in the private sector. Thus, the active learning hypothesis receives no support for women in the Swedish working population in general.     

Minimum Wages in a Segmented Labor Market: Evidence from South Africa

The segmented labor market model describes the impacts of minimum wages on covered and uncovered sectors. This paper examines the impacts of an industry-specific minimum wage in South Africa, a state characterized by high unemployment, a robust union movement, and the presence of a large informal sector. Under the industry-specific wage law, formal agricultural and household workers are covered, while workers in other sectors are not. The unique aspect of this paper lies in the ability to compare the impacts of minimum wage legislation on formal covered, informal covered, formal uncovered, and informal uncovered workers. This natural experiment allows us to test whether industry-specific minimum wage legislation leads to higher wages, whether wage increases are restricted solely to covered formal sectors or if there are spillover effects, and whether such legislation manifests in disemployment effects. We find evidence of higher wages yet disemployment among black workers in formal markets. In informal markets we find no employment effects, but higher wages in formal markets appear to have spilled over into informal markets in covered sectors.     

Pension Reforms,Working Patterns and Gender Pension Gaps in Europe

European pension reforms are dominated by the principles of privatization and individualization. Privatizing and individualizing pension entitlements call for a redefinition of the responsibilities of states and individuals. Moreover, statutorily introducing individualization calls for equal opportunities to be guaranteed. However, the implementation of equal opportunities is a long way off because pension‐determining factors are still subject to gender distinctions, among other things. Gender distinction is inherent in life courses as well as in welfare arrangements. Welfare arrangements determine the legitimate reasons for gaining pension rights, how the measures of different entitlements are interrelated and which factors hamper a person's ability to fulfil the pension norm. This article analyses the link between welfare arrangements and women's life courses for a better understanding of the gendered norms of pension entitlements by focusing on gendered wages and life expectancies, gendered working patterns, and the connection between care and pensions.     

Getting Beyond the Training vs. Work Experience Debate: The Role of Labor Markets,Social Capital,Cultural Capital,and Community Resources in Long-Term Poverty

SUMMARY

Policy makers and advocates often see either training or work experience as the way out of poverty. Research in Wisconsin and Pennsylvania suggests that family-supporting jobs continue to elude many low-income women for more complicated reasons: (1) a bifurcated labor market where over half of the jobs pay below-poverty wages with limited benefits, (2) a lack of bridging social capital, (3) limited bi-cultural workplace habits, (4) problems juggling kin obligations and work, and (5) inappropriate or limited training. The study suggests that policy makers should take a two-pronged approach to combating poverty. Training, combined with network development and appropriate cultural capital development, will help some women. Given the growing percentage of low-paying jobs, however, policy should also seek to raise wages, supplement wages, and provide universal benefits.     

Migrant female domestic workers: debating the economic,social and political impacts in Singapore

This article analyzes the impact of migrant female domestic workers on the socioeconomic and political context in Singapore. Although Singapore state policy opposes long-term immigration, there is a labor shortage which permits a transient work force of low-skilled foreign workers. In the late 1990s, Singapore had over 100,000 foreign maids, of whom 75% were from the Philippines, 20% were from Indonesia, and the rest were from Sri Lanka. Legislation ensures their short-term migrant status, restricts their numbers, and governs their employment. Migrant workers are also regulated through a stringent allocation system based on household income of employers and the need for caregivers for children. Work permits are conditioned on non-marriage to citizens of Singapore or pregnancy. Terms and conditions of migrant employment are not specified, which permits long hours of work and potential for inhumane treatment. Migrant women fulfill jobs not desired by natives and accept these jobs at lower wages. There is disagreement about the motivation for the maid levy and its need, fairness, and effectiveness in reducing demand for foreign maids. Most public discussion focuses on social values and morality of foreign maids. Politically, tensions arise over the legality of migration, which results from tourist worker migration to Singapore and circumvents Filipino labor controls. Most of the adjustment cases that come to the attention of OWWA are tourist workers. Policies should be gender sensitive.     

“Back There We Had Nothing to Eat”: The Case of Transnational Food Insecurity

This article discusses migrant food insecurity in the United States from the perspective of Mexican and Central American migrant women. Many describe migrating because they had nothing to eat in their countries of origin. Migration is thus framed as a necessary strategy for overcoming food insecurity. I argue that these women's perspectives are unique in the migration literature because food security comprises a gendered labour from which men are frequently spared. Unfortunately, food insecurity still prevails in these women's households in the US. Assuming a “double‐duty” workday of earning wages and overseeing care within households, these women experience the added burden of ensuring food security of households “back there.” Thus, I argue that the food practices of Mexican and Central American migrant women provide a unique lens through which to understand the increased feminization of transnational migration from Latin America to other regions of the world.     

A Privileged Pole? Diversity in Women's Pay,Pensions and Wealth in Britain

Is gender on its own becoming redundant in the analysis of employment experiences? There is a growing interest in economic diversity amongst women within the social sciences, with commentators suggesting, firstly, that a polarization in women's labour market experiences is occurring. Secondly, economic diversity amongst women may even be so distinct that a privileged pole is faring substantially better in wage and occupational terms than most men. This article uses data from the Family Resources Survey to explore these two suggestions. It concludes that the success on the labour market that has been achieved by an economically privileged pole amongst women supports the decline in the power of gender to explain variation in occupational patterns and wages, but it is clear that gender (tempered with awareness of the ways that it is cross‐cut by class, ethnicity and other social divisions) remains an invaluable explanatory variable for our understanding of economic security in its fuller sense, not least in the pension positions of women.     

Schedule flexibility in hourly jobs: unanticipated consequences and promising directions

This article considers the challenge of extending conventional models of flexibility to hourly jobs that are often structured quite differently than the salaried, professional positions for which flexibility options were originally designed. We argue that the assumptions of job rigidity and overwork motivating existing flexibility options may not be broadly applicable across jobs in the US labor market. We focus specifically on two types of flexibility: (1) working reduced hours and (2) varying work timing. We first review central aspects of the US business and policy contexts that inspire our concerns, and then draw on original analyses from US census data and several examples from our comparative case-study research to explain how conventional flexibility options do not always map well onto hourly jobs, and in certain instances may disadvantage workers by undermining their ability to earn an adequate living. We conclude with a discussion of alternative approaches to implementing flexibility in hourly jobs when hours are scarce and fluctuating rather than long and rigid.     

Economic implications of migration into the Federal Republic of Germany, 1988-1992

"An analysis of the effects of the last wave of migration into West Germany on labor markets, public finances and economic growth, this study points at the often ignored fact that the migrants were rather successful in finding jobs and thus helped in eliminating labor shortages in certain industries. Simulations with a macroeconometric model for the FRG indicate that in 1992 the GDP was almost 6 percent higher than without migration, that 90,000 jobs were created and that migration created a surplus of DM14 billion in the public sector, compared to the baseline. This study also makes clear, however, that these effects mainly depend on a quick absorption of migrants by FRG labor markets, and as to the social system, the relief may be only transitory."     

Contracting-out in the United Kingdom: a partnership between social security and private pension plans

Contracting-out was introduced in the United Kingdom in 1978 as part of the arrangements for the State Earnings-Related Pension Scheme (SERPS) in order to avoid duplication with the existing well-developed defined benefit occupational pension plan sector. Members and sponsors of contracted-out schemes were able to save on their social security contributions in recognition of the fact that they were accruing equivalent benefits through an occupational pension plan. Later on this concept was extended to those with individual money purchase pension plans. This article considers a brief history of contracting-out, the principles of contracting-out, some problems associated with contracting-out, the implications of the introduction of stakeholder pensions and State Second Pension, and the latest rebate review and rebate orders. It examines how U.K. pensions policy since 1978 has been based on a partnership between social security and private pension plans.