Retirement,financial incentives and health

This paper aims to assess empirically the relative size of incentive effects and health for the retirement decision. We specify and estimate a dynamic model for retirement behaviour that explicitly takes account of health and eligibility conditions and replacement rates of alternative exit routes from the labour force. A range of health instruments are constructed from estimates of a model for health dynamics and these are used to assess the effect of reporting errors and of endogeneity of health on the estimates of the retirement model. Our results provide evidence that health and retirement are endogenously related. Health matters but the size of the health effect depends crucially on the health measure used. We find that subjective health measures overstate the effect of health on retirement and that endogeneity of health suppresses the health effect. Incentive effects are relatively insensitive to alternative specifications for health. The incentive effects are strong for early retirement (ER) schemes. There is evidence that income streams in alternative exit routes are compared in the retirement decision and that alternative exit routes act as substitutes.     

The great recession and changes in faculty expected retirement age

The great recession of 2008 has shifted retirement plans of workers in general. This paper examines the changes in expected retirement age following the great recession of 2008 of a subset of the labor force—university faculty who are near retirees and participate in a defined contribution retirement plan. We find evidence consistent with the life-cycle model which predicts changes in expected retirement age when there are unexpected changes in retirement wealth. For the faculty who expected to delay planned retirement, the average delay is 4 years. Regression estimates indicate a longer time horizon moderates the delay in expected retirement. We also find evidence that expected wealth at retirement amplifies the delay in expected retirement age while current value of retirement wealth moderates the delay in planned retirement.     

Who's for Early the Retirement Trap?

'Early retirement' is another false conclusion torn lingering unemployment. Norman Fowler, Secretary of State for Social Services, is investigating state pensions. Peter Warburton of the City (of London) University. argues that the 65-year (men) and 60-year (woman) retirement age is a strpitjacket producing unnatural effects - premature retirement of able people and postponed retirement of worn-out people. Asa spin-off from research sponsored by the IEA, he proposes radical reform in the state scheme and produces a 'do-it-yourself' kit for readers from 'workaholics' to 'shuchers' to calculate their optimum retirement ages.     

Charitable Giving of Alumni

A bstract . This research examines the "age-donation" profile of gift-giving alumniai a large public university , based on a pooled micro-data random sample of 4,242 alumni (1926/27-1989/90 graduates) who gave cash gifts during the 1975/76-1989/90 fiscal years. The covariance regression model results indicate lack of statistically significant difference between gift-giving women and men. However, the School of Business graduates , alumni who proceeded to obtain graduate degrees from this university, and alumni members of non-Greek social organizations gave significantly more. Moreover, alumni contributions varied systematically over the business cycle and a 1962 Federal Court Order to desegregate the university racially reduced donations but not significantly. Given the 63-year cycle studied, the growth rates of alumni donations of money are projected to decline after roughly age 52, which falls short of the typical retirement age.     

A proposed mechanism for commercializing university technology

Numerous successful small companies have been created in recent years based on technology developed within universities. Often the companies are direct spin-offs from the university, involving faculty members who participated in the research and development programs which created the technology. These companies present interesting problems as well as opportunities for both the university and the faculty members involved. The paper discusses several aspects of these problems and suggests a mechanism to help the universities become more effective in encouraging such companies and sharing in the economic rewards, while maintaining their own integrity.     

曹德旺跨栏

"天下事,大事小事,欲了了之,不了了之。我再管两年三年又如何?早晚还是要结束。"曹德旺讲述如何跨过退休这道栏战士永远不会老,只不过难免让岁月缴了枪。万花筒般的人生上半部再怎么波澜壮阔,总归要迎来谢幕的时刻。60岁还是65岁?当是否延迟退休年龄成为社会讨论的焦点话题时,中国第一代企业家却格外恋栈,退休这道坎,有时候比创业更折磨人。     

PLATEAUED MANAGERS: THEIR NEED GRATIFICATIONS AND THEIR EFFORT-PERFORMANCE EXPECTATIONS [I]

The repeal of mandatory retirement laws will result in new pressures on organizations to motivate and satisfy those managers who have reached their ceiling in the organization. This study compares the satisfaction and motivation (in terms of performance-reward instrumentalities) of a group of plateaued and non-plateaued managers. This was done both with and without controlling for the managers age. Age, rather than plateauing, seemed to be implicated in any observed differences. We found that older managers reported lower satisfaction with future organizational rewards and see stronger instrumentalities for mentoring type activities then do their younger colleagues.     

Retirement Age Considerations for Central Europe

The paper analyzes the arguments for and possible consequences of an increase in the statutory retirement age in central Europe, including the Czech Republic, Hungary, Poland and Slovakia. The analysis reflects the current and projected demographic and economic developments, and discerns the long-term trends from the specific aspects of transition. As for the long-term trends, the paper offers a simple framework for calculation of the intergenerational transfers through pensions under different reform scenarios. The calculations confirm that, in the aging central European societies, down-sizing of the existing pay-as-you-go schemes, including an increase in the statutory retirement age, is necessary to sustain solvency and intergenerational fairness in the public provision for retirement. The paper argues, however, that proposals to increase the retirement age in central European countries need to enhance their assessment of the possible counter-productive effects, which may arise due to the low working ability, poor health status and high occupational and environmental risks faced by the population.     

Unemployment as a Factor in Early Retirement Decisions

Abstract . Is retiring early a way for older workers to cope with the stigma and discouragement of unemployment? A regression analysis using the National Longitudinal Survey sample of American men age 52–64 in 1973 shows that weeks of previous unemployment is significantly related to early retirement for both Black and White males. This relationship holds when controlling for social security and pension eligibility, assets, health limitations, family responsibilities, occupation, changes in the unemployment rate and urban residence. The results suggest that social policy concerning retirement prior to age 65 should take into account the important role of unemployment in pushing workers out of the labor force into early retirement.     

‘Repeat commercializers,’ the ‘habitual entrepreneurs’ of university–industry technology transfer

Among academic faculty, is there a class of ‘repeat commercializers’ who account for a disproportionate share of commercialized technologies arising from university research? In a survey of 172 engineering, mathematics, and science faculty members from a major Canadian university, we found evidence that a class of repeat commercializers does exist. Further, we found that the 12% of the faculty who are repeat commercializers account for 80% of the commercialized innovations. Interviews with repeat commercializers in the same faculties at the same university suggest that repeat commercializers parallel habitual entrepreneurs in that they have the ability to commercialize (i.e. the ability to generate and identify commercializable inventions and the ability to acquire resources for the commercialization of their inventions) and the aspiration to do so (i.e. commercialization-friendly attitudes). Since repeat commercializers account for such a large percentage of commercialization activity, it is important that programs and policies associated with technology transfer address the needs of this subpopulation of the faculty.     

Organizational decline,extended work life and implications for faculty planning

Following several decades of expansion that facilitated growth and development of opportunities for faculty, projections of declining enrollment of students and postponed retirement of senior faculty have created a renewed interest in human-resource planning for universities. This paper proposes a planning framework that focuses in particular on the consequences of exogenous changes for internal faculty promotions and draws attention to tradeoffs among potentially competing objectives. A goalprogramming variation is applied to a fractional flow model of organizational mobility, and is illustrated by simulation of five-year planning scenarios at a large liberal-arts college.     

A performance matrix for strategies to improve satisfaction among faculty members in higher education

Most studies of higher education focus on students as ??customers??, and these studies tend to evaluate educational services on the basis of the satisfaction of these customers. This approach often neglects the question of the satisfaction (or dissatisfaction) of faculty members. The study designs a questionnaire for higher-education faculty members on the basis of the literature on this subject and discussion with scholars. Surveys of importance and satisfaction are then undertaken among Taiwanese faculty members with respect to various items. Each item is then placed on was modified a performance control matrix to determine an appropriate improvement strategy. Items that are found to be outside the range of an appropriate performance zone (APZ) are identified as objectives for improvement. The quality loss function (QLF) is then adopted to calculate an area of improvement objectives. A large QLF value indicates that faculty members satisfaction needs to be improved in these items. The results of this investigation demonstrate that retirement arrangements, job security, salaries, and fair promotion systems need to be improved. The resources of higher-education institutions must be invested appropriately to avoid waste and to enhance satisfaction among faculty members.     

Riding off into the Sunset: Organizational Sensegiving,Shareholder Sensemaking,and Reactions to CEO Retirement

We test hypotheses derived from resource dependence and sensemaking/sensegiving theoretical lenses in the context of CEO succession, focusing on an under‐researched yet prevalent type of executive turnover – CEO retirement. Using event study methodology and a sample of CEO retirements from S&P 1500 firms during the 2003–12 period, we find that, all else equal, shareholders’ perceptions of organizations’ capacity to serve their interests are adversely affected when a retirement related change occurs in the leadership structure. Specifically, in line with resource dependence theory, we find that CEO retirement disclosures typically generate negative abnormal returns. Furthermore, in line with the sensemaking perspective, we find that the magnitude of shareholders’ reactions is contingent on the lexical sensegiving cues contained in the organizational narratives that are released to capital markets via executive retirement announcements. Overall, our theory and results point to CEO retirement events as consequential in the eyes of shareholders, challenging an important assumption of extant succession research. Moreover, they suggest that shareholders’ interpretation of these events is influenced by organizational sensegiving, highlighting the important role of organizational communication around succession events.     

Do optimal scale and efficiency matter in Taiwan's higher education reform? A stochastic cost frontier approach

A number of universities in Taiwan are currently confronting problems of low enrolment rates and financial distress mainly as a result of low birth rates and over-expansion of the higher education industry over the last few decades. These universities were requested by the Taiwan Ministry of Education to find a solution, including shutting down problematic departments and merging with other institutions. As such, information on cost efficiency and the optimal size of universities is important for making appropriate decisions. A stochastic cost frontier approach is adopted in the study to measure the cost efficiency and identify optimal size of Taiwanese universities by considering the heterogeneity of university quality. The results of the study indicate a positive correlation between the optimal size and the university quality. Approximately 47 percent of the selected universities are identified as either over- or under-sized. Moreover, the magnitude of cost saving from efficiency improvement is found to be no smaller than that of size adjustment. Therefore, it is suggested that universities should put more effort into efficiency improvement while considering size adjustment.     

Retirement and social security: the roles of self-fulfilling expectations and educational investments

Countries with higher implicit taxes on continued work are associated with lower labor force participation rates of the elderly. This paper constructs a politico-economic model that accounts for this feature based on multiple, self-fulfilling expectations of agents. In this model, agents are identical at birth and can become skilled (or remain unskilled) through educational investment. When agents hold expectations of larger social security benefits, it provides a disincentive to engage in educational investment, thereby resulting in an unskilled majority. In turn, this unskilled majority supports larger social security benefits, which induces the retirement of the elderly and thus results in a lower labor force participation rate. The opposite applies when agents have expectations of smaller social security benefits in their old age.     

Retirement policies for the 21st century

As we rapidly approach the 21st century, current human resource management policies emphasizing early retirement may prove shortsighted. Changing demographics and projected labor shortages in certain critical occupations may require a reversal of present early retirement policies. This article reports the views of a national sample of 897 executives on work and retirement. We report their reactions to pressures for early retirement, their responses to proposed incentives to delay retirmeent, and finally, their planned post retirement activities. Their responses have important implications for revising human resource policies in the years ahead.     

ENTRE-U: An entrepreneurial orientation scale for universities

The development of a new scale, ENTRE-U, that measures the entrepreneurial orientation of university departments is described. Governments, industry, and funding organizations challenge universities to become more "entrepreneurial", often in the context of increasing the commercialization outcomes of publicly funded research. The extant literature on corporate entrepreneurial orientation (EO) suggests this orientation is beneficial when organizations face dynamic or hostile environments. However, the EO concept and related empirical research focus on firms in competitive markets. Little is known about the nature of EO in other organizational contexts. ENTRE-U was developed to facilitate empirical research on EO within public universities. Interviews and a follow-up focus group with faculty members from departments in computer science, health science, and engineering at Canadian Universities elicited items for the new scale. A survey of university department heads provided data for statistical development of the scale. ENTRE-U consists of four dimensions – research mobilization, unconventionality, industry collaboration, and perception of university policies – that successfully predict department involvement in commercialization activities. Implications of the findings and opportunities for research using the ENTRE-U scale are discussed.     

Predicting Retirement Upon Eligibility: An Embeddedness Perspective

Concern over the impact of baby‐boomers' retirement on needed skills and proprietary knowledge has stimulated an interest in identifying workplace factors associated with retirement upon eligibility. Drawing from embeddedness theory, the authors identify work‐based antecedents potentially underlying a related, but distinct, form of withdrawal—retirement upon eligibility. The authors generate and test hypotheses regarding the impact of fit‐, sacrifice‐, and links‐related antecedents using a prospective study design and a national probability sample of some 500 older individuals who, at the time of the initial interview, were within months of becoming—for the first time—eligible to receive such benefits. The findings indicate that, beyond the effects of person‐based antecedents (e.g., age, health, assets, expected retirement income), a combination of fit‐ (i.e., job challenge), sacrifice‐ (i.e., perceived organizational support), and links‐related factors (i.e., stability of close workplace peer relations) have a substantial influence on the decision to retire upon eligibility. © 2013 Wiley Periodicals, Inc.     

FLEXIBLE RETIREMENT

Flexible retirement – that is, the opportunity to choose one's own personal retirement age – is a hedge against pension risk and provides insurance to workers facing health or productivity shocks. Flexible retirement and flexible pension schemes are in practice closely linked because of imperfect capital markets and institutional restrictions. I discuss three necessary conditions to provide insurance through flexible retirement. First, it should be possible to adjust the pension starting date at limited cost. This condition is gradually being fulfilled, as many countries are moving toward more actuarially neutral pension schemes. Second, individuals should be willing to adjust their labor supply in case of a wealth shock. This condition seems largely fulfilled, although the available empirical evidence suggests that the ‘standard retirement age’ is at least as important as the income effect. Third, the labor market should be able to deal with flexible individual retirement decisions. This condition is gaining importance, but has not yet received much attention in the literature. Institutions often hamper employment past the ‘standard retirement age’. Moreover, the hiring rates of older workers are low and their unemployment duration is high. Institutional reforms facilitating flexible retirement opportunities are desirable from an insurance perspective.     

Retirement and the parable of the fishermen

Using a parable about a fishing community, the paper draws morals for retirement policy-makers. It concludes that government should phase out universal pensions, reduce taxes, avoid tax discrimination for savings, stop trying to influence market interest rates and promoting consumption, and remove barriers to trade and investment.