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Critics say cash-balance plans strip benefits from older workers.
The trend has drawn criticism from many actuaries and economists, who say pensions are a superior benefit, and from older workers, who tend to appreciate the advantages of pensions more keenly as they approach retirement.
DealBook » Lansdowne Partners Names New Chief | REUTERS A Tech Debate Over Allowing More Foreign Workers | "As the Senate voted on a landmark immigration bill that would let Silicon Valley companies import more foreign engineers, some Americans remain locked in a deeply emotional argument over whether outsiders are taking jobs away" from older workers, The New York Times reports.
In general, the participants showed great adaptability, but there has been some resistance, particularly from older workers.
The pitch from older workers should be: This is what I can do for you that kids can't.
As a sensitivity test, we re-estimated our model using four rather than three educational categories and kept the threshold to separate young from older workers at 40 years.
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Therefore, the right hand side stands for taxation revenues coming from young employed workers at period t and from old workers who keep working during their second period of life.
Further research by García-Pérez and Sánchez-Martín (2008b) find evidence of the relevance of social security incentives in explaining transitions from unemployment for older workers.
In the first 2 years after displacement, employment probabilities for older workers displaced from declining industries are respectively 5 to 8 percentage points below those of older workers displaced from better performing industries, whereas wages are 2 to 3 percentage points lower, which effect persists in the long run.
Although this may seem to be good news, a substantial part of those migrating to Sweden are low skilled and are, therefore, not likely to benefit from an improved situation for older workers in the labor market.
Nor do the proposals even touch on the potential from encouraging longer careers for older workers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com