Wellesley College economists Courtney Coile and Phillip Levine have published a new paper, “The Market Crash and Mass Layoffs: How the Current Economic Crisis May Affect Retirement,” this month through the National Bureau of Economic Research.
The study is the subject of a story, “Gulf Between Rich and Poor Seniors Could Widen,” in Forbes Magazine.
“With the unemployment rate nearing 10 percent, some older workers may lose their jobs and be forced to retire earlier than expected,” Coile said.
The findings suggest that more people will retire early due to the rising unemployment rate than will delay retirement due to lost retirement savings resulting from the stock market crash.
“In fact, we predict that the increase in retirement brought about by the weak labor market will be about 50 percent larger than the decrease in retirement brought about by falling equity markets,” Coile said.
This runs counter to the perception, evident in dozens of stories in the press over the past year, that the main effect of the current economic crisis on retirement will be retirement delays.
“If anything, this understates the problem because different types of workers are affected by these market conditions,” Levine said. “Lower income workers are the ones who will be more likely to lose their jobs and be forced into retirement sooner. Higher income workers are the ones who will suffer stock losses and who may choose to work longer. In terms of their well-being in retirement, it is the low-income workers will be hurt more.”
The paper uses 30 years of data from the March Current Population Survey to estimate models relating retirement decisions to fluctuations in equity, housing, and labor markets.
Coile and Levine continue to investigate this issue, focusing on its impact on the well-being of individuals in their 70s, well after they have left the labor force. They are incorporating their work in a book, Reconsidering Retirement: How Losses and Layoffs Affect Older Workers, soon to be published by Brookings Press.
Since 1875, Wellesley College has been a leader in providing an excellent liberal arts education for women who will make a difference in the world. Its 500-acre campus near Boston is home to 2,300 undergraduate students from all 50 states and 68 countries. For more information, go to www.wellesley.edu. To read the story online, go to http://www.wellesley.edu/PublicAffairs/Releases/2009/100709.html.
Arlie Corday | Newswise Science News
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
So-called quantum many-body scars allow quantum systems to stay out of equilibrium much longer, explaining experiment | Study published in Nature Physics
Recently, researchers from Harvard and MIT succeeded in trapping a record 53 atoms and individually controlling their quantum state, realizing what is called a...
The historic first detection of gravitational waves from colliding black holes far outside our galaxy opened a new window to understanding the universe. A...
A team led by Austrian experimental physicist Rainer Blatt has succeeded in characterizing the quantum entanglement of two spatially separated atoms by observing their light emission. This fundamental demonstration could lead to the development of highly sensitive optical gradiometers for the precise measurement of the gravitational field or the earth's magnetic field.
The age of quantum technology has long been heralded. Decades of research into the quantum world have led to the development of methods that make it possible...
Cardiovascular tissue engineering aims to treat heart disease with prostheses that grow and regenerate. Now, researchers from the University of Zurich, the Technical University Eindhoven and the Charité Berlin have successfully implanted regenerative heart valves, designed with the aid of computer simulations, into sheep for the first time.
Producing living tissue or organs based on human cells is one of the main research fields in regenerative medicine. Tissue engineering, which involves growing...
A team of scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg investigated optically-induced superconductivity in the alkali-doped fulleride K3C60under high external pressures. This study allowed, on one hand, to uniquely assess the nature of the transient state as a superconducting phase. In addition, it unveiled the possibility to induce superconductivity in K3C60 at temperatures far above the -170 degrees Celsius hypothesized previously, and rather all the way to room temperature. The paper by Cantaluppi et al has been published in Nature Physics.
Unlike ordinary metals, superconductors have the unique capability of transporting electrical currents without any loss. Nowadays, their technological...
02.05.2018 | Event News
13.04.2018 | Event News
12.04.2018 | Event News
18.05.2018 | Power and Electrical Engineering
18.05.2018 | Information Technology
18.05.2018 | Information Technology