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
The RWI/ISL-Container Throughput Index started off well in 2018
22.02.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
RWI/ISL-Container Throughput Index ending 2017 on a positive note
24.01.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Quantum computers may one day solve algorithmic problems which even the biggest supercomputers today can’t manage. But how do you test a quantum computer to...
For the first time, a team of researchers at the Max-Planck Institute (MPI) for Polymer Research in Mainz, Germany, has succeeded in making an integrated circuit (IC) from just a monolayer of a semiconducting polymer via a bottom-up, self-assembly approach.
In the self-assembly process, the semiconducting polymer arranges itself into an ordered monolayer in a transistor. The transistors are binary switches used...
Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale
Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...
For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.
But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...
Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.
The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...
15.02.2018 | Event News
13.02.2018 | Event News
12.02.2018 | Event News
22.02.2018 | Life Sciences
22.02.2018 | Information Technology
22.02.2018 | Health and Medicine