The retirement behavior of workers covered by union and nonunion pension plans

Previous authors have noted that there are significant differences between the provisions of union and nonunion pension plans. I present evidence that sheds light on two hypotheses. The first (Parsons, 1983) posits that union pensions should encourage earlier retirement because productivity falls as workers age, but union rules prohibit firms from lowering wages. The second (Freeman, 1985) argues that union pension plans reflect the preferences of older, more senior workers. I find some support for both hypotheses. I conducted some of the research for this paper as an economist with Unicon Research Corporation. I thank the National Institute on Aging for funding (grant number 5 RO1 AG06133-03). I also thank Fran Horvath, Mark Kennet, Mark Loewenstein, Bob McIntire, Tom Plewes, Bill Wiatrowski, and three anonymous referees for useful comments. All views and opinions expressed herein are the author's and do not necessarily reflect those of the Bureau of Labor Statistics, the National Institute on Aging, or Unicon Research Corporation.     

Population aging: a comparison among industrialized countries

Reproduced with permission from Health Affairs, © 2000     

Paternal childcare and parental leave policies: evidence from industrialized countries

This paper merges data from the Multinational Time Use Study (MTUS) with national parental leave characteristics from eight industrialized countries from 1971 to 2005 to estimate the association between national parental leave arrangements and paternal childcare. We also test whether this association varies according to a father’s educational level. We find that the number of parental leave weeks available to fathers and high rates of benefit are positively associated with fathers’ childcare time. This is generally robust when taking into account country and year as fixed effects, and other country-specific variables such as female employment rates. The magnitudes of the coefficients are economically significant. For example, high parental leave benefits compared to none are associated with an increase of almost 1 h per week in paternal childcare time. This relationship between benefit rate and time spent on childcare is strongest for highly educated fathers. They also benefit the most from exclusive ‘daddy weeks’ whereas the positive association of transferable leave to paternal childcare is solely driven by lowly educated fathers.     

How has public policy shaped defined-benefit pension coverage in Canada?

Unlike federal regulation in the United States, variation in provincial regulation across Canada provides a natural laboratory to examine the impact of public policy on pension coverage. Using data from a nationally representative sample of private sector workers in Canada in 1994, we find that higher marginal taxes, earlier vesting, and more permissive eligibility rules increase coverage, while a ban on mandatory retirement has a negative, but insignificant effect. Implications for differences in defined-benefit coverage between Canada and the United States, and pension theory, research, and practice are discussed.     

Comments on demography and population policy in the developing countries

Commenting on an article by A. Ia. Kvasha, the author wonders whethe r the Soviet state, as a matter of policy, encourages measures to limit the growth of population. He further regards the Soviet attitude, as he understands it, of making light of the expanding population in developing countries as dangerous and suggests that in the developing world some measures of population control would be necessary in making the transition from a traditional agricultural society into a modern ind ustrial one. In a reply, Kvasha admits that social and economic development can only be obtained by radical changes in the economic structure and the creation of an independent economic base and a relatively well-developed home-owned industry. But he feels that demographic problems, no matter how acute, are always resolved in intimate association with the entire course of social progress. Each socialist country may take a unique approach to population problems as socialist governments do have the opportunity to regulate many processes of life. Thus, the current population policy in the Soviet Union consists of measures to stimulate the birthrate while preserving the right for individuals to plan their own families. Poland is taking measure to limit births while Czechoslovakia and Hungary are trying to increase them.     

Education and fertility: policy implications for developing countries

Efforts to reduce the high rates of population growth in Africa are largely hampered by a social and political climate which does not recognize high birth rates as a problem. Only 2 countries (Kenya and Ghana) are actively antinatalist officially, the rest being actively pronatalist or taking no firm stand. The author argues that support for family planning will grow only when governments support mass education programs. A framework showing the linkages between fertility and formal education is developed. On the demographic level, pursuit of higher levels of education delays entry into marriage, directly and through pursuit of occupations which do not encourage early marriage. Lowered infant mortality through improved utilization of modern health care by the educated also leads to reduced fertility. On the sociocultural level, migration to urban centers among the educated leads to new cultural norms and constraints on large families from the pursuit of modern careers. The author asserts that the inverse relation between education and fertility is well known, and that national support for mass education is needed to speed economic development, change the position of women and alter peoples' values.     

Leisure activity and adjustment in retirement

A sample of retired persons in a southern metropolitan area responded to a questionnaire designed to investigate the interrelationship between level of leisure activity and adjustment in retirement Adjustment was measured by two indices, life satisfaction and alienation. The survey's results show that persons who have more leisure activities are more satisfied with their lives and are less alienated than those who have few leisure activities.