• Journal of Labour Economics
• /
• v.27 no.3
• /
• pp.1-23
• /
• 2004

To investigate the interdependence of the decisions on when to retire and how much consume before and after retirement, we compare the pre- (or post-) retirement consumption conditioned on the retirement decision with pre- (or post-) retirement consumption regardless of retirement decision by using the Korea Labor and Income Panel Study(KLIPS). We employ the two-stage switching regression for the econometric method to investigate the interdependence of two decisions of retirement and pre- or post retirement consumption. Then we test the existence of the interdependence in terms of the significance of the estimated selection biases which appear in the pre- (post-) retirement consumption equations for early and late retirees. In those equations, we also compare the income elasticity of the consumption of the early retirees with that of the late retirees. The empirical results show that there is negative selection bias in early retirees' consumption. These results imply that due to the early retirement decision early retirees would have consumed less than they actually have. The income elasticities of the consumption of the early retirees is smaller than that of the late retirees in pre- (or post-) retirement consumption equation. This result shows that relatively longer retirement period due 10 the early retirement affect the pre-retirement consumption. early retirees' marginal propensity to consume should be lower than that of the late retirees.

• Journal of Labour Economics
• /
• v.37 no.3
• /
• pp.101-122
• /
• 2014

This paper empirically estimates the decision of aged workers related to the retirement decision. Using the supplemental survey for aged people of the Korean panel data set, the paper analyses the correlation between the retirement decision of middle-aged people (aged 50 years or older) and personal characteristics and job characteristics of main jobs that aged people had worked, particularly focusing on the mandatory job retirement regulation and its regulation of retirement ages. The empirical results show that the regulated retirement age is more important than the existence of mandatory retirement system in related to the workers' retirement decision.

• Korean Journal of Social Welfare
• /
• v.67 no.3
• /
• pp.281-303
• /
• 2015

This study examined the interdependent retirement decision between husbands and wives. Since most of retirees in Korea retired by involuntary reasons such as health problems, it purposes to test whether the involuntary retirement of husbands(wives) influences the retirement decision of wives(husbands). Using data from 4th Korean Longitudinal Study of Ageing Panel, it conducted probit and multivariate probit analysis on 1,038 dual-earner couples aged 51~76 to test interdependence of couples' retirement. The results showed that husbands who have retired wife were more likely to retire. It also proved that involuntary retirement of spouse is a significant predictor of early retirement decision, though the direction of the effect is reversed by gender. Wives were more likely to retire when husband were retired involuntarily, while husbands were more likely to stay in labor market. These findings helped to understand the retirement decision of aged couples in Korea and brought suggestion on labor market and care policies for aged couples.

• KDI Journal of Economic Policy
• /
• v.11 no.4
• /
• pp.109-125
• /
• 1989

사회보험(Social Insurance)은 노령(老齡) 등 미래(未來)에 확실(確實)히 발생(發生)할 사안(事案)뿐 아니라 질병 등 불확실(不確實)한 사안(事案)에 의한 소득(所得)의 상실(喪失)을 보상하기 위한 보험(保險)의 역할을 한다. 대부분의 사회보험연구는 이 불확실성(不確實性)이 배제된 모형의 분석을 하고 있는데 본고(本稿)에서는 그러한 불확실성(不確實性)이 존재(存在)할 때 사회보험이 개인의 은퇴시기 결정에 미치는 영향을 분석하였다. 사회보험은 노동기(勞動期)로부터 은퇴기(隱退期)로의 소득이전(所得移轉)일 뿐 아니라 일을 할 수 있는 상태로부터 질병 등의 불확실한 사안(事案)에 의해 초래된, 일을 할 수 없는 상태로의 소득이전(所得移轉)도 된다. 이 두 번째의 역할 때문에 사회보험은 개인(個人)의 은퇴시기(隱退時期)를 늦추는 효과를 보일 수 있다. 특히 사회적 최선적정은퇴시기(最善適正隱退時期)(first best optimum)는 사회보험이 전혀 없는 경우의 은퇴시기가 보다 늦다. 반면 어느 일정(一定)한 시점(時點) 이후에만 사회보험(社會保險)의 수혜(受惠)가 가능(可能)하다면 이는 오히려 조기은퇴(早期隱退)를 초래(招來)하게 된다는 것을 보였다.

• 한국노년학
• /
• v.29 no.1
• /
• pp.215-230
• /
• 2009

In this study, we compared Korean retirees' retirement wealth adequacy with their subjective recognition and examined determinants affecting the retirement wealth adequacy. The data were drawn from the 2007 Korean Retiree Survey carried out by the Korean Investors Education Foundation. The major results of this study were as follows. The analysis suggested that Korean retirees(age 50 and over) were not well prepared financially. When using their assets(except for their residence), only 23.2% had accumulated enough wealth to meet their expenses for the remainder of their life. 25.7% of retirees subjectively considered themselves to be adequately covered. The comparison results showed that 23.8% of retirees' subjective recognition was not in accord with the estimation results. One of the most troubling groups is the 12.9% of retirees who were in the inadequacy group even though they considered themselves to be in the adequacy group. Retirement wealth adequacy determinants were quite different between objective adequacy and subjective recognition. Household income and ownership of a residence have positive effects on the retirement wealth adequacy. Also, the importance of retirement planning to retirement wealth adequacy is statistically confirmed. Based on these findings, This research suggests private retirement planning and political implications for retirees and preretired households.

• Korean Journal of Social Welfare
• /
• v.57 no.3
• /
• pp.415-435
• /
• 2005

The purpose of this study was to investigate conceptual constructions which determined financial preparedness for retirement. This study was guided by two theoretical frameworks, planned behavior theory and hierarchical personality model. Based on two theories, the conceptual framework which aimed to explain financial preparedness for retirement were formulated. Data from 'The health and welfare profile of the elderly aged 65 and or older in Chung-choo city' was analyzed. The subjects consisted of 87 economically active elderly population. Structure equation model was employed for statistical analyses. The results of structure equation model revealed that the casual relationship between the level of perceived financial-planning knowledge and the level of financial preparedness for retirement was statistically significant. Also, the hypothesized structural model for financial preparedness for retirement had the good model fit. Implications for social work practice from this study were discussed.

• Journal of Labour Economics
• /
• v.29 no.1
• /
• pp.129-152
• /
• 2006

The purpose in this study is to analyze the effect of expected public pension assets (or social security wealth) and retirement incentives on retirement behaviors of two wage earners households. For the purpose of the study, an empirical analysis was conducted. In the empirical step, it was found that the empirical results were significant for men, but not for women namely, statistically asymmetric if behaviors of two couples are interdependent. The cause for the statistically asymmetric results were then determined. The Bivariate Probit model was used for estimation in the first step and the KLIPS(Korean Labor and Income Panel Study) was used as data for estimation. According to the empirical analysis, the results showed statistically significant asymmetry for men, however not for women, in expected public pension assets and other retirement incentives, non-wage assets, age difference, spouse's health status, spouse's monthly wages per hour and aging of their spouse In this study, cause of statistically asymmetric result in asymmetric complementarities of leisure of couples were found, then explained through different methods of comparison from the most recent studies. First, spouse's cross wage elasticity of self leisure demand(retirement) was calculated and determined whether complementarities of leisure of couples is positive or negative. Then, the degree of complementarities of leisure was distinguished in comparison with the relative size of two cross elasticities. Thus, men have relatively strong complementarities of leisure. But for women, it may roughly cancel out due to the substitution effect and the income effect. Therefore, women have relatively weak complementarities of leisure.

• Journal of Cadastre & Land InformatiX
• /
• v.48 no.1
• /
• pp.35-53
• /
• 2018

Recently, there is a growing interest in housing policy to prepare for the aging society. The purpose of this study is exploring the factors that explain housing consumption and adjustment of pre-retirees after retirement. 1,351 samples were collected from A bank and analyzed. There categories of housing consumption adjustment were considered including downsizing, maintain, and upsizing. Gender, educational level, housing size, housing type, asset size, and willingness to work after retirement were examined to see if they can explain the housing consumption adjustment of pre-retirees using orderd- probit model. The finding of this study is that housing size, asset size, and willingness to work after retirement statistically significantly explain the housing consumption adjustment. At specific, firstly, if the current size of the housing is relatively large, it is highly likely to downsize housing after retirement. Second, pre-retiree whose assets exceeded 1 billion won were more likely to scale up housing than assets of over 300 million to less than 500 million won. Lastly, unless there is absolutely no willingness to work after retirement, it is indicated that it intends to up-sizing consumption rather than down-sizing adjustment. The results of this study can provide useful information for the housing policy in order to prepare for the (post) aged society.

• Korean Journal of Social Welfare Studies
• /
• v.44 no.3
• /
• pp.85-112
• /
• 2013

This study aims to understand the developmental trajectories of life satisfaction among retirees and to examine what factors differentiate different trajectory classes. This study used three waves of longitudinal data from Korean Retirement and Income Study and data collected every two years(2005, 2007, and 2009). Subjects were respondents aged 50-69 who identified to be retired between wave 1 and wave 2. Finally, this study used 243 respondents for final data analysis. Life satisfaction was measured by seven items. The latent class growth model and multiple logistic regression model were used for data analysis. This study identified three distinct trajectory classes: high stable class(47.7%), high at the early stage but decreased class(42.8%), and low at the early stage and then decreased class(9.5%). This study founded that approximately 50% of the retirees experienced the decline of life satisfaction after retirement and about 10% of the sample was the most vulnerable group. This study analyzed what factors make different among the distinct trajectory groups. As a results, retirees who experienced the improvement in health change were more likely to be in 'high stable class' compared to 'hight at the early stage but decreased class'. In addition, retirees who were less educated, maintained the same health status rather than the improvement, worked as a temporary or a day laborer, and had less household income were more likely to belong to 'low at the early stage and then decreased class' relative to 'high stable class'. This study suggests that there are distinct three trajectories on life satisfaction among the retirees and finds out factors differentiating between trajectory groups. Based on these findings, the study discusses the implications for social work practice and further study.

• Proceedings of the KHMA Conference
• /
• 2010.05a
• /
• pp.349-349
• /
• 2010