Healthcare Economist

Japan is an incredible success story.  After so much suffering in World War II, this country now has the second largest economy in the world and the longest life expectancy of any country in the OECD. This success however, may become a fiscal nightmare in the future. In 1998, 16.2% of the Japanese population was…

Like the French, Germans retire early (on average at between age 59 and 60) and for Germans, this early retirement is  seen as a social achievement.  Some polls, however, show that younger Germans do not believe they will receive an adequate pension in their old age and attempts at reform are underway. The Germans have had…

According to the OECD Structural Policy Indicators paper, France has one of the highest implicit tax rates on continued work during its old age pension in the entire OECD.  In 1998, the implicit tax was over 80%.  Subsequent reforms have reduced the implicit tax to about 50% in 2003; yet only Luxemburg and the Netherlands…

In Denmark the official retirement age is 65, but on average most people retire at age 61.  Around 8%-9% of GNP is spent on government income transfers to the elderly.  Among men between the ages of 55-65, only Sweden, the U.S., and Japan have higher labor force participation (LFP) rates.  Why do we see such…

In Chapter 2 of Social Security Program and Retirement around the World, economists Michael Baker, Jonathan Gruber and Kevin Milligan look at Canada’s Income Security Programs (IS).  According to their research, total expenditures on the three largest elderly transfer programs in Canada cost $22.7 billion in 1998-1999 or 20% of the federal budget.  Also, like most…

The Gruber and Wise book evaluates how the following two reforms will affect a variety of OECD countries: Delay official retirement age 3 years “Common Reform” The Common Reform is an option favored by many economists since it seeks to minimize the distortions of an individual’s decision of when to retire.  The four characteristics of…

Social Security has done much to reduce poverty rates in the elderly.  The program, originally known as Old Age, Survivors and Disability Insurance (OASDI), was signed into law in the United States by FDR in 1935.  At that time, poverty among elderly in the U.S. exceeded 50%.  The Center on Budget and Policy Priorities now…