Economic Issues of Aging: A Policy Oriented Curriculum Component

Economic Issues of Aging: A Policy Oriented Curriculum Component

This component is organized to first introduce the topic of the economic status of the aged and then to examine sources of economic well-being (earnings, social security, pensions, savings, other) and then specific needs in old age, particularly those related to health care provision and financing. Two key meta-policy perspectives: generational equity and cross-national comparisons fill out the component.

I. Introduction to Economics of Aging in a Policy Context

The objective is to introduce the topic of the economic status of the aged as viewed from a policy perspective. First the facts of economic status and adequacy (poverty rates) need to be clarified. The focal point is the wide diversity of economic well-being among the aged. Useful concepts such as the life cycle model of income, consumption, and savings, and economic well-being (resources relative to needs) are introduced.

Also important is the development of the tools of policy analysis, in particular, criteria for assessing policy options and current problems. This policy analytic approach is outlined in the last section below.

IA. Key Points and Concepts

Diversity of Well-Being (resources relative to needs)
Income, Wealth, Consumption
Life Cycle Model of Economic Well-Being
Poverty: Adequacy of Economic Resources in Old Age
Gender Differences in Economic Status
Generational Differences in Economic Status
Policy Analysis: Developing Criteria for Evaluating Old Age Policy Assessment

Print Bibliography for Overview

Burkhauser, Richard V. and Greg J. Duncan. 1991. "United States Public Policy and the Elderly," Journal of Population Economics, 4: 217-231.
Congressional Budget Office. 1994. Reducing Entitlement Spending. Washington, DC: Congressional Budget Office.
Edmondson, Brad. 1997. "The Facts of Death," American Demographics, April: 47-53.
Gale, William G. 1997. "The Aging of America: Will the Baby Boom Be Ready for Retirement," The Brookings Review, 15(3): 4-9.
Hobbs, Frank B. and Bonnie L. Damon. 1996. 65+ in the United States. Current Population Reports, Special Studies, P23-190. Washington, DC: Government Printing Office.
Moon, M., and J. Mulvey. 1996. Entitlements and the Elderly: Protecting Promises, Recognizing Reality. Washington, DC: Urban Institute Press.
National Academy on Aging. 1997. The Public Policy and Aging Report. Washington, DC: National Academy on Aging. Summer.
OECD. 1996. "Ageing in OECD Countries: A Critical Policy Challenge," Social Policy Study No. 20. Paris, France: OECD.
Population Reference Bureau. 1997. Aging Trends & Forecasts. Washington, DC: National Institutes of Health. May.
Quinn, J. 1987. "The Economic Status of the Elderly: Beware the Mean," Review of Income and Wealth, 33: 63-82.
Quinn, J. and T. Smeeding. 1993. "The Present and Future Economic Well-Being of the Aged." In R. Burkhauser and D. Salisbury (eds.), Pensions in a Changing Economy. Washington, DC: Employee Benefit Research Institute, pp.5-18.
Schulz, James H. 1976. The Economics of Aging, 6th edition. Westport, CT: Auburn House.
Smith, James P. 1997. "The Changing Economic Circumstances of the Elderly: Income, Wealth, and Social Security," Center for Policy Research Policy Brief No. 8. Syracuse, NY: The Maxwell School, Syracuse University.
Social Security Administration. 1995. Fast Facts and Figures about Social Security. Washington, DC: Government Printing Office.
Wise, David A. 1997. Facing the Age Wave. Stanford, CA: Hoover Institution Press.

Electronic Sources for Overview

Statistical Brief: Sixty-Five Plus in the United States PDF version of an overview of social and demographic characteristics of older people in America published in April 1996 as a Current Population Report, Special Studies, reference number P23-190, by the U.S. Census Bureau.
Work, Retirement, and the Economic Well-Being of the Elderly, Chapter 4 of the 1999 Economic Report of the President.
Electronic Policy Network is a not-for-profit organization that provides a single access point for policy research organizations such as Families USA and the Jerome Levy Economics Institute. Other policy research organizations are affiliated with EPN so that their material can be indexed and accessed through the same site.
World Health Organization Issues New Healthy Life Expectancy Rankings. Japan Number One in New 'Healthy Life' System. Press Release, WHO, 4 June 2000.
The Green Book is a unique collection of program descriptions and historical data on a wide variety of social and economic topics, including Social Security, employment, earnings, welfare, child support, health insurance, the elderly, families with children, poverty and taxation.
AoA Profile of Older Americans: 1999. Topics include basic demographic statistics, future growth, marital status, living arrangements, racial/ethnic composition, geographic distribution, housing, employment, and health care.
AoA Resource Director for Older People. An alphabetical listing.
Statistical Information on Aging, compiled by Saadia Greenberg, AoA.
Census home page
Social Security Administration home page
Association for the Study of Demography of Aging
National Aging Information Center, a service of the Administration on Aging. Many useful resources and links, including searchable databases, publications, and graphs.
National Archive of Computerized Data on Aging (NACDA) The mission of the National Archive of Computerized Data on Aging (NACDA) is to advance research on aging and the aged by helping researchers to profit from the under-exploited potentials of a broad range of data sets. NACDA acquires and preserves data sets relevant to gerontological research, processes them as needed to promote effective research use, and disseminates them to the research community. As the nation's largest library of computer-readable data on aging and the life course, NACDA offers opportunities for secondary analysis on major issues of scientific and policy relevance. NACDA is a project of the Inter-university Consortium for Political and Social Research (ICPSR), and is funded by the National Institute on Aging.
NIA Exploratory Centers for Demography and Economics of Aging Metapage
Syllabi on Demography, Economics and Epidemiology of Aging "This web page presents a compilation of course syllabi on the demography, economics and epidemiology of aging. This catalogue is intended to be a public service to enhance the quality of teaching and research on aging. The original published catalogue was compiled by Vicki Freedman of RAND and sponsored by the National Institute on Aging, Office of Demography and Population Epidemiology."
Results of the 2000 SU Summer Workshop. As a direct result of the 1998 summer workshop, "Introducing Public Policy Issues in Aging into the Curriculum," several of the attendees at that workshop sent their newly developed syllabi.

II. Economic Status: Sources of Well-Being

Here we look at the key components of economic resources among the aged and policy issues involved in each: work and retirement; Social Security adequacy and finance; private pensions; savings and wealth, including housing; other sources of support, including the family and other government transfer programs. Each subtopic includes its own set of policy issues. The combination of sources determines economic resources in old age.

IIA. Earnings and Retirement

Key Policy Issues:

Retirement: how defined?
Early retirement programs and disability at old ages
Reasons for retirement: voluntary or involuntary
Work in retirement: work as nonprimary source of income
Age discrimination and mandatory retirement
Time use in retirement: "Third Age" issues

Print Bibliography for Earnings and Retirement

Burkhauser, Richard V. and Joseph F. Quinn. 1997. "Pro-Work Policy Proposals for Older Americans in the 21st Century," Center for Policy Research Policy Brief No. 9. Syracuse, NY: The Maxwell School, Syracuse University.
Leonesio, Michael V. 1995. "The Economics of Retirement: A Nontechnical Guide," ORS Working Paper No. 66. Social Security Administration. April.
OECD. 1995. "The Transition from Work to Retirement," Social Policy Study No. 16. Paris, France: OECD.
OECD. 1995a. "The Labour Market and Older Workers," Social Policy Study No. 17. Paris, France: OECD.

Electronic sources

The Asset and Health Dynamics Among the Oldest Old (AHEAD) and Health and Retirement Study (HRS), nationally representative longitudinal data collections begun in the early 1990s that examine retirement and the aging of society.
AoA, Redefining Retirement The Administration on Aging's activities on redefining retirement are designed to lay the foundation for changing public policies, behaviors, attitudes, and choices for planning and improving our quality of life. In conjunction with private and other public organizations, AoA is developing this initiative in an effort to educate and motivate baby boomers to make thoughtful choices now so that they will be more likely to be financially secure, productive, healthy and socially involved in their later years.
Retirement and Financial Planning: Online Resources, compiled by Saadia Greenburg, AoA, who warns that "Users should be aware that many, if not most, of these resources are connected in some way with offerors of financial services of some type and that no endorsement or recommendation of the offeror is implied or intended."
The Role of Bridge Jobs in the Retirement Patterns of Older Americans in the 1990s by Joseph Quinn, revised July 1996, Boston College Working Papers in Economics No. 324, in Adobe Acrobat format.
Does Social Security Discourage Work? by Jill Quadagno, Florida State University, and Joseph Quinn,1995, Boston College Working Papers in Economics No. 322, in Adobe Acrobat format. Figures available from the author.

IIB. Social Security: Adequacy and Reform Issues

Key Policy Issues

Adequacy: current vs. future
System financing: payroll taxes vs. other tax
Benefits structure: current, double decker, two-tier, other
Defined benefit vs. defined contribution
Spousal benefits: homemaker credits, earnings sharing

Print Bibliography for Social Security

Aaron, H. and R. Reischer. 1996. "America's Most Famous Generation Approaches Another Milestone," Brookings Review, Fall: 11-13.
Berkowitz, Edward D. 1997. "Research and Politics in Policymaking for Social Security," Journal of Gerontology: Social Sciences, 52B(3): 115-16.
Boskin, Michael J. 1998. "A Framework for Considering Social Security Reform," presented at the National Academy of Social Insurance 10th Annual Conference, "Framing the Social Security Debate: Values, Politics & Economics," Washington, DC, January 29-30.
Detlefs, Dale R., Robert J. Myers, and R. Robert Treanor. 1996. 1997 Guide to Social Security and Medicare. Louisville, KY: William M. Mercer. Inc.
Diamond, Peter. 1998. "Economics of Social Security Reform--An Overview," presented at the National Academy of Social Insurance 10th Annual Conference, "Framing the Social Security Debate: Values, Politics & Economics," Washington, DC, January 29-30.
Diamond, Peter and Jonathan Gruber. 1997. "Social Security and Retirement in the U.S.," Working Paper No. 6097, National Bureau of Economic Research, July.
Employment Policy Foundation. 1997. "Fix the CPI and Keep Social Security From Going Broke," Fact & Fallacy, 3(2), February.
Employment Policy Foundation. 1997a. "Social Security: Crisis or No Big Deal?" Fact & Fallacy, 3(12), December.
GAO. 1993. Social Security: SSA Needs to Improve Service for Program Participants. Washington, DC: US General Accounting Office. March.
GAO. 1993a. Social Security: Sustained Effort Needed to Improve Management and Prepare for the Future. Washington, DC: US General Accounting Office. October.
GAO. 1993b. Social Security Administration: SSA Needs to Act Now to Assure World-Class Service. Washington, DC: US General Accounting Office. October.
Gist, John R. 1996. "The Distribution Effects of Reductions in the Consumer Price Index." Washington, DC.: AARP, February.
Gramlich, Edward M. 1997. "Mending but Not Ending Social Security: The Individual Accounts Plan," Benefits Quarterly, 13(3): 25-28.
Gratton, Brian. 1997. "The Politics of Dependency Estimates: Social Security Board Statistics, 1935-1939," Journal of Gerontology: Social Sciences, 52B(3): 117-124.
Heclo, Hugh. 1998. "A Political Science Perspective on Social Security Reform," presented at the National Academy of Social Insurance 10th Annual Conference, "Framing the Social Security Debate: Values, Politics & Economics," Washington, DC, January 29-30.
Holden, Karen C. 1997. "Women as Widows under a Reformed Social Security System," mimeo. Madison, WI: University of Wisconsin.
Iams, Howard M. and Steven H. Sandell. 1996. "Past is Prologue: Simulating Lifetime Social Security Earnings for the Twenty-First Century," prepared for presentation at the U.S. Bureau of the Census 1996 Annual Research Conference, March.
Jones, Thomas W. 1997. "Maintaining Social Security," Benefits Quarterly, 13(3):19-24.
Leimer, Dean R. 1995. "A Guide to Social Security Money's Worth Issues," ORS Working Paper No. 67. Social Security Administration. April.
Paine, Thomas H. 1997. "Appraisal of Alternative Ways to Fix Social Security," Benefits Quarterly, 13(3): 14-18.
Panis, Constantijn W.A. and Lee A. Lillard. 1996. Social Security: Equity, Adequacy, Reforms. Santa Monica, CA: RAND.
Pattison, David. 1994. "Taxation of Social Security Benefits Under the New Income Tax Provisions: Distributional Estimates for 1994," Social Security Bulletin, 57(2): 44-50.
Pattison, David. 1995. "The Distribution of OASDI Taxes and Benefits by Income Decile," Social Security Bulletin, 58(2): 21-33.
Pattison, David and David E. Harrington. 1993. "Proposals to Modify the Taxation of Social Security Benefits: Options and Distributional Effects," Social Security Bulletin, 56(2): 3-21.
Quadragno, Jill. 1996. "Social Security and the Myth of the Entitlement 'Crisis'," The Gerontologist, 36(3): 391-399.
Quinn, Joseph F. 1996. Entitlements and the Federal Budget: Securing Our Future. Washington, DC: National Academy on Aging. May.
Rivers, William A. 1997. "Will the Social Security System Continue to Offer Social Security?" Benefits Quarterly, 13(3): 47-51.
Salisbury, Dallas L. 1997. "Social Security--Retirees Can't Live Without It, It Can't Survive Without Reform," Benefits Quarterly, 13(3): 8-13.
Salisbury, Dallas L. (ed). 1997. Assessing Social Security Reform Alternatives. Washington, DC: Employee Benefit Research Institute.
Sass, Steven A., and Robert K. Triest. 1997. Social Security Reform: Conference Proceedings: Links to Saving, Investment, and Growth. Conference Series No. 41. Federal Reserve Bank of Boston. June.
Schieber, Sylvester J. 1997. "The Need for Social Security Reform and the Implications of Funding Benefits Through Personal Security Accounts," Benefits Quarterly, 13(3): 29-39.
Smeeding, T.M. 1999. Policy Brief No. 16/1999. Aging Studies Program Policy Brief. Social Security Reform: Improving Benefit Adequacy and Economic Security for Women. (November).
Social Security Administration. 1995. Fast Facts & Figures About Social Security. Washington, DC: Social Security Administration.
Social Security Advisory Board. 1997. Increasing Public Understanding of Social Security. Washington, DC: Social Security Advisory Board. September.
Social Security Advisory Board. 1998. Strengthening Social Security Research: The Responsibilities of the Social Security Administration. Washington, DC: Social Security Advisory Board. January.
Social Security Advisory Council. 1995. Executive Summary and Final Report. Washington, DC: Social Security Advisory Council. June.
Steuerle, C. and J. Bakija. 1994. Retooling Social Security for the 21st Century: Right and Wrong Approaches to Reform. Washington, DC: Urban Institute Press.
Turner, John A. 1997. "The Social Security Reform Debate," prepared for the Fourth International Research Seminar on Issues in Social Security in Sigtuna, Sweden, June.
Twentieth Century Fund. 1996. Social Security Reform: A Twentieth Century Fund Guide to the Issues. New York: Twentieth Century Fund, Inc.
U.S. General Accounting Office. 1996. Social Security: Issues Involving Benefit Equity for Working Women. Washington, D.C.: U.S. General Accounting Office, April.
Warlick, Jennifer L. and Richard V. Burkhauser. 1986. "Who Gets What from Social Security? Analyzing the Redistributive Effects of Government Transfer Programs," The Journal of Economic Education, 17(3): 187-193.
Williamson, John B. 1997. "A Critique of the Case for Privatizing Social Security," The Gerontologist, 37(5): 561-571.
1994-95 SSA Advisory Council Technical Panel on Trends and Issues in Retirement: Executive Summary. June 9, 1995.

Electronic sources

Social Security Retirement Benefits, an overview of the program for retirees.
SSA Personal Earnings and Benfit Estimate Statement, SSA-7004 PEBES. An online version of the form to request a statement of your Social Security earnings history, an estimate of SS taxes paid and future benefits.
SSA Office of Policy. PDF versions of SSA publications on aging and income, the impact of Social Security benefits on reducing poverty among older Americans.
1994-95 Advisory Council on Social Security Technical Panel on Trends and Issues in Retirement Saving, Final Report Population Aging Research Center, University of Pennsylvania, Working Paper Series No. 95-06 (Published Jointly with the Pension Research Council Working Paper Series as No. 95-13).
Social Security Reform: A Budget Neutral Approach to Reducing Older Women's Disproportionate Risk of Poverty. Center for Policy Research, Maxwell School, Syracuse University, Policy Brief No. 2/1994. Richard V. Burkhauser and Timothy M. Smeeding.
"Fixing " Social Security, by Bernard Wasow and David Smith, reprinted from The Washington Post, 1995. Bernard Wasow and David Smith analyze public policy issues for the Century Foundation, formerly known as the Twentieth Century Fund, a nonprofit foundation based in New York City.
Social Security: Can Tomorrow's Retirees Bank on the Original Contract with America? by Jon Shure, vice president of the Century Foundation. Reprinted on from The Star-Ledger newspaper.
Economic Commentary: Social Security: Are We Getting Our Money's Worth? January 1996, by Jagadeesh Gokhale and Kevin J. Lansing, of the Federal Reserve Bank of Cleveland.

II.C. Private Pensions

Key Policy Issues

Tax treatment of pensions
Pension coverage and benefit levels: men vs. women
Defined benefit vs. defined contribution plans, risks, rewards, control
Early withdrawal
Survivor's benefits

Print Bibliography

Burkhauser, R. and D. Salisbury (eds.). 1993. Pensions in a Changing Economy. Washington, DC: Employee Benefit Research Institute.
McGarry, Kathleen and Andrew Davenport. 1997. "Pensions and the Distribution of Wealth," NBER Working Paper No. 6171. Cambridge, MA: National Bureau of Economic Research, September.
U. S. General Accounting Office. 1992. Pension Plans: Survivor Benefit Coverage for Wives Increased After 1984 Pensions Law. Washington, D.C.: U.S. General Accounting Office, February.
U.S. General Accounting Office. 1997. Retirement Income: Implications of Demographic Trends for Social Security and Pension Reform. Washington, D.C.: U.S. General Accounting Office, July.

Electronic sources

Employee Benefits Research Institute (EBRI) is the only nonprofit, nonpartisan organization committed to original public policy research and education on economic security and employee benefits. The Institute's mission is to advance the public's, the media's and policymakers' knowledge and understanding of employee benefits and their importance to our nation's economy.
EBRI 1998 Retirement Confidence Survey Retirement is not the golden age for all. Survey reveals that lifestyles and finances fall short for many seniors. Experts say reality of life in retirement offers lessons for current workers.

II. D. Savings and Wealth in old Age

Key Policy Issues

Savings behavior and effects of public policy on savings
Housing wealth and accessibility
Bequest behavior and wealth taxation
Housing choice and physical infirmity

Print Bibliography

Farkas, Steve and Jean Johnson. 1994. Promises to Keep: How Leaders and the Public Respond to Saving and Retirement. Washington, DC: Public Agenda.
Mayer, Christopher J. and Katerina V. Simons. 1994. "A New Look at Reverse Mortgages: Potential Market and Institutional Constraints," New England Economic Review, March/April: 15-26.
McGarry, Kathleen and Andrew Davenport. 1997. "Pensions and the Distribution of Wealth," NBER Working Paper No. 6171. Cambridge, MA: National Bureau of Economic Research. September.
Sass, Steven A. and Robert K. Triest. 1997. Social Security Reform: Conference Proceedings: Links to Saving, Investment, and Growth. Conference Series No. 41. Federal Reserve Bank of Boston. June.

Electronic sources

Population and Housing Patterns Among Older Americans, "National data on mobility, demographic characteristics, living arrangements, educational status, income and poverty patterns, and primary language spoken among the Nation's population age 60 and older." compiled by National Aging Information Center (NAIC).
U.S. Census Bureau Housing and Household Economic Statistics

II. E. Other Sources of Economic Support in Old Age

Key Policy Issues

Role of family transfers, cash and in kind (caregiving)
Role of welfare programs such as SSI
Shared living arrangements as support in old age

Print Bibliography

Burkhauser, R.V. and M.C. Daly. 2000. "The Supplemental Security Income Program." Paper presented at the National Bureau of Economic Research "Means-Tested Transfer Programs in the U.S." conference, May 12, 2000.
Holden, K. and T. Smeeding. 1990. "The Poor, the Rich and the Insecure Elderly Caught in Between," Milbank Quarterly, 68(2): 191-219.
Neumark, David and Elizabeth Powers. 1997. "Means Testing Social Security," mimeo. Michigan State University Department of Economics.
Quinn, Joseph F. 1997. Entitlements and the Federal Budget: A Summary. Washington, DC: National Academy on Aging.
Ross, S. G. 1996. "Domestic Reforms: The Importance of Process," Future of the Public Sector, No. 8, Urban Institute, December.

II. F. Summing It Up: Economic Well-Being in Old Age

Key Policy Issues

Reliance on one or several sources of economic support
Incentives and disincentives: the relationship between sources of support and behavioral responses

Print Bibliography

Burkhauser, R. and D. Salisbury (eds.). 1993. Pensions in a Changing Economy. Washington, DC: Employee Benefit Research Institute.
Burkhauser, R. and T. Smeeding. 1994. "Social Security Reform: A Budget Neutral Approach to Reducing Older Women's Risk of Poverty," Center for Policy Research Policy Brief No. 2. Syracuse, NY: The Maxwell School, Syracuse University, Fall.
Burkhauser, Richard V., J.S. Butler, and Karen C. Holden. 1991. "How the Death of a Spouse Affects Economic Well-Being after Retirement: A Hazard Model Approach," Social Science Quarterly, 72(3): 502-519.
Chalfie, Deborah. 1995. The Real Golden Girls: The Prevalence and Policy Treatment of Midlife and Older People Living in Nontraditional Households. Washington, D.C., AARP.
Choudhury, Sharmila and Michael V. Leonesio. 1997. "Life-Cycle Aspects of Poverty Among Older Women," ORES Working Paper No. 71. Social Security Administration. April.
Congressional Budget Office. 1994. Reducing Entitlement Spending. Washington, DC: Congressional Budget Office.
Congressional Budget Office. 1997. Long-Term Budgetary Pressures and Policy Options. Washington, DC: Congressional Budget Office. March.
Crown, William H., Phyllis H. Mutschler, James H. Schulz, and Rebecca Loew. 1993. "The Economic Status of Older Women," Policy Center on Aging: Brandeis University.
Cutler, David M. 1995. "Re-examining the Three-Legged Stool of Retirement Income Support," prepared for the National Academy of Social Insurance Meeting, Washington, DC., January.
Fierst, Edith. 1997. "Women and Privatized Retirement," mimeo. November 26.
Gist, John R. "Entitlements and the Federal Budget: Facts, Folklore, and Future," The Milbank Quarterly, 74(3).
Gist, Yvonne J. and Victoria A. Velkoff. 1997. Gender and Aging: Demographic Dimensions. Washington, DC: U.S. Department of Commerce. December.
Haveman, Robert, Karen Holden, Barbara Wolfe, Paul Smith, and Kathryn Wilson. 1997. "The Changing Economic Status of Disabled Women, 1982-1991: Trends and Their Determinants," Discussion Paper No. 1143-97. Institute for Research on Poverty, University of Wisconsin-Madison.
Holden, Karen C. 1996. "The Income Shock of Widowhood: Public Policy Issues," The La Follette Policy Report, 7(1).
Holden, Karen C. and Cathleen D. Zick. 1997. "The Economic Impact of Widowhood in the United States in the 1990s: The Role of Social Insurance and Private Pensions," prepared for the Meetings of the Foundation for International Studies on Social Security, Sigtuna, Sweden, June.
Holtz-Eakin, D. & Smeeding, T. 1994. "Income, Wealth and Intergenerational Relations." In S. Preston & L. Martin (eds.), The Demography of Aging. Washington, DC: National Academy of Sciences Press, pp.102-145.
Levine, Phillip B. and Olivia S. Mitchell. 1997. "Women on the Verge of Retirement: Predictors of Retiree Well-Being," Pension Research Council Working Paper 97-2. University of Pennsylvania. January.
National Academy of Aging. 1994. "Blueprint for a National Policy on Older Women." Advisory Panel on Older Women. Mimeo. Syracuse University.
OECD. 1996. "Ageing in OECD Countries: A Critical Policy Challenge," Social Policy Study No. 20. Paris, France: OECD.
Public Policy Institute. 1995. "Recipiency of Entitlement and Other Safety-Net Program Benefits Among Families in 1993," AARP Data Digest. November.
Reimers, Cordelia and Marjorie Honig. 1995. "Responses to Social Security by Men and Women: Myopic and Far-Sighted Behavior," The Journal of Human Resources, 31(2): 360-382.
Ruggles, P. and M. Moon. 1994. "The Needy or the Greedy? Assessing the Income Support Needs of an Aging Population." In T. Marmor, V. Greene, and T. Smeeding (eds.), Economic Security and Intergenerational Justice: A Look at North America. Washington, DC: Urban Institute Press, pp.207-226.
Sandell, Steven H., and Howard M. Iams. 1996. "Women's Future Social Security Benefits: Why Widows Will Still Be Poor," prepared for the Population Association of America Annual Meetings, New Orleans, LA, May.
Save Our Security Coalition. 1996. Making Social Security Work Better for Women. Washington, D.C.: Save Our Security Coalition, June.
Shaver, Sheila and Jonathan Bradshaw. 1994. "The Recognition of Wifely Labour by Welfare States," Social Policy & Administration, 29(1).
Smeeding, T. 1994. "Effects of a Changing Distribution of Income on Income Security and Health Care Models." In Proceedings of the Conference on Future Income and Health Care Needs and Resources for the Aged. Washington, DC: Public Trustees of the Social Security Administration, pp.209-238.
Smeeding, Timothy M. 1996. "Older Women Around the World: The Feminization of Poverty?" prepared for the Annual Meeting of the GSA, Washington, D.C., November.
Smeeding, Timothy M. 1997. "Reshuffling Responsibilities in Old Age: The United States in a Comparative Perspective," Luxembourg Income Study Working Paper No. 153. Syracuse University.
Smeeding, T.M. and J.P. Smith. 1998. "The Economic Status of the Elderly on the Eve of Social Security Reform, Progressive Policy Institute working paper." Washington, DC: Progressive Policy Institute, November.
Smith, James P. 1997. "The Changing Economic Circumstances of the Elderly: Income, Wealth, and Social Security," Center for Policy Research Policy Brief No. 8. Syracuse, NY: The Maxwell School, Syracuse University.
U. S. General Accounting Office. 1992. Pension Plans: Survivor Benefit Coverage for Wives Increased After 1984 Pensions Law. Washington, D.C.: U.S. General Accounting Office, February.
U. S. General Accounting Office. 1997. Social Security Reform: Implications for the Financial Well-Being of Women. Washington, D.C.: U.S. General Accounting Office, April.
U.S. House of Representatives Select Committee on Aging. 1992. How Well do Women Fare Under the Nation's Retirement Policies? Comm. Pub. No. 102-879. Washington, D.C.: U.S. Government Printing Office, September.
Weir, David and Robert J. Willis. 1995. "Life Insurance and the Gender Bias of Poverty in Widowhood," Center for Demography and Economics of Aging Workshop Paper No. 10. Center for Policy Research, Syracuse University, Fall.
Williamson, John B. 1997. "Should Women Support the Privatization of Social Security?" Challenge, 40(4): 97-108.
Williamson, John B. and Sara E. Rix. 1997. "Women's Economic Vulnerability and Social Security Reform," prepared for the 50th Annual Scientific Meeting of the Gerontological Society of America, Cincinnati, Ohio, November.

III. Economic Needs in Old Age: Health Care Finance and Provision

Besides common needs for food, housing, and shelter, the elderly are particularly in need of acute health care services and long term care services. How these services are delivered (e.g., HMOs vs. other forms of delivery) and financed (Medicaid, Medicare, etc.) are the key policy topics here.

Key Policy Issues

Medicare: benefit structure and reform issues
Medicaid: role in elder health care finance
Acute health care finance: Medicare and what else?
Chronic health care finance: long term care, public and private funding; home care and caregiving
HMOs and the aged

Print Bibliography

Freund, D.A., D. Willison, G. Reeher, J. Cosby, A. Ferraro, and B. O'Brien. 2000. "International Report: Outpatient Pharmaceuticals and the Elderly: Policies in Seven Nations," Health Affairs, 19:3(May/June): 259-266. Special Issue: Care for The Elderly: How the World is Coping.
Hennessy, Patrick and Joshua Wiener. 1996. "Paying for Care for the Elderly," The OECD Observer, August/September: 13-16.
Kane, R. 1995. "Expanding the Home Care Concept: Blurring Distinctions Among Home Care Institutional Care and Other Long Term Care Services," Milbank Quarterly, Vol.73, No.2: 161-186.
Reishcauer, Robert D. 1997. "Medicare: Beyond 2002: Preparing for the Baby Boomer," The Brookings Review, 15 (3): 24-27.

Electronic sources

Health Care Financing Administration: The Medicare and Medicaid Agency
- Medicare
- Medicaid
Urban Institute: Medicaid and Long Term Care
The Basics: Medicare Reform, The Century Foundation Guide to the Issues. Chapters include Introduction; What's Right with Medicare?; What's Wrong with Medicare"; The Nuts and Bolts of Medicare; Proposals for Reform: Strengths and Weaknesses; and Notes.
Medicaid Reform: The Basics, The Century Foundation Guide to the Issues. Chapters include Introduction; What's Right with Medicaid?; What's Wrong with Medicaid?; The Risks of the Congressional Reforms; and Notes.

IV. Poverty in Old Age

Key Issues

Concepts of Poverty: Relative and Absolute; Needs vs. Resources; Static and Dynamic
General Overview of Aging Poverty
Dynamics of Poverty and Lifecourse Transitions: Retirement and Widowhood
Older Women's Poverty

Print Bibliography

Burkhauser, R. and G. Duncan. 1988. "Life Events, Public Policy and the Economic Vulnerability of Children and the Elderly." In J. Palmer, T. Smeeding, and B.B. Torrey (eds.), The Vulnerable. Washington, DC: Urban Institute Press.
Burkhauser, R.and T. Smeeding. 1994. Social Security Reform: A Budget Neutral Approach to Reducing Older Women's Disproportionate Risk of Poverty, Center for Policy Research Policy Brief No.2. Syracuse, NY: The Maxwell School, Syracuse University.
Choudhury, Sharmila and Michael V. Leonesio. 1997. "Life-Cycle Aspects of Poverty Among Older Women," ORES Working Paper No. 71. Social Security Administration. April.
Hardy, Melissa A. and Lawrence E. Hazelrigg. 1993. "The Gender of Poverty in an Aging Population," Working Paper No. PI-93-2. Pepper Institute on Aging.
Holden, K. and T. Smeeding. 1990. "The Poor, the Rich, and the Insecure Elderly caught in Between," Milbank Quarterly/Health and Society, 68: 191-219.
Holden, Karen C., Richard V. Burkhauser, and Daniel J. Feaster. 1988. "The Timing of Falls Into Poverty After Retirement and Widowhood," Demography, 25(3): 405-414.
Hurd, Michael D. 1989. "The Poverty of Widows: Future Prospects." In NBER Economics of Aging. Chicago: University of Chicago Press, p. 201-228.
National Academy of Sciences. 1995. Measuring Poverty: A New Approach. Washington, DC: National Academy of Sciences Press.
Sandell, Steven H. and Howard M. Iams. 1996. "Women's Future Social Security Benefits: Why Widows Will Still Be Poor," prepared for the Population Association of America Annual Meetings, New Orleans, LA, May.
Smeeding, Timothy M. 1999. Policy Brief No. 16/1999. Aging Studies Program Policy Brief. Social Security Reform: Improving Benefit Adequacy and Economic Security for Women. Syracuse, NY: Center for Policy Research, The Maxwell School, (November).
Smeeding, Timothy M. 1996. "Older Women Around the World: The Feminization of Poverty?" prepared for the Annual Meetings of the GSA, Washington, D.C., November.
Smeeding, Timothy M., Carroll L. Estes, and Lou Glasse. 1999. "Social Security Reform and Older Women: Improving the System," Center for Policy Research Income Security Paper Series No. 22. Syracuse, NY: Center for Policy Research, The Maxwell School, (June).
U. S. Bureau of the Census. 1995. Income, Poverty and Valuation of Noncash Benefits: 1993. Current Population Reports, (Series P-60, No.188), February. Washington, DC: U.S. Government Printing Office.

Electronic sources

The HHS Poverty Guidelines: One Version of the [U.S.] Federal Poverty Measure.
U.S. Census Bureau Statistics on Poverty

V. Intergenerational Equity

Is there equity across generations? How do we think about the topic and what are the key policy issues? In particular, how will the baby boom fare as it retires?

Key Policy Issues

Well-being of generations: variance across cohorts and "moneys worth" issues for social retirement schemes
Generational accounting notions: age, period, cohort effects
Baby boom prospects in retirement
Bonds and tensions across generations

Print Bibliography

Auerbach, Alan J. 1997. "Quantifying the Current U.S. Fiscal Imbalance," Burch Center Working Paper Series No. B97-25. University of California at Berkeley. May.
OECD. 1995. "The Transition from Work to Retirement," Social Policy Study No. 16. Paris, France: OECD.
OECD. 1995a. "The Labour Market and Older Workers," Social Policy Study No. 17. Paris, France: OECD.
Smeeding, T., L. Rainwater, and B.B. Torrey. 1993. "Going to Extremes: The U.S. Aged in an International Context," Luxembourg Income Study Working Paper No. 89, Syracuse University.
World Bank Policy Research Report. 1994. Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth. New York, NY: Oxford University Press.

Electronic sources

Justice Between Generations, by Phillip Longman, June 1985, The Atlantic Monthly. "Unless a number of trends are soon reversed, the Baby Boomers are headed for a disastrous retirement."

VI. International Perspectives

Cross-national comparisons of economic status and policy differences can help tell us how the United States is different and similar to other nations. Key comparative topics include poverty prevention, retirement ages, and health care finance.

Key Policy Issues

Value of international comparisons and common issues of population aging
Poverty and economic status in other nations
Social Security reform in OECD countries
Acute health care and long term care finance in OECD countries

Print Bibliography

Freund, D.A., D. Willison, G. Reeher, J. Cosby, A. Ferraro, and B. O'Brien. 2000. "International Report: Outpatient Pharmaceuticals and the Elderly: Policies in Seven Nations," Health Affairs, 19:3(May/June): 259-266. Special Issue: Care for The Elderly: How the World is Coping.
Hennessy, Patrick and Joshua Wiener. 1996. "Paying for Care for the Elderly," The OECD Observer, August/September: 13-16.
Myles, John, and Jill Quadagno. 1993. "The Politics of Income Security for the Elderly in Canada and the United States: Explaining the Difference," Working Paper No. PI-93-7. Pepper Institute on Aging.
Shaver, Sheila and Jonathan Bradshaw. 1994. "The Recognition of Wifely Labour by Welfare States," Social Policy & Administration, 29(1).
Smeeding, T., B. Torrey, and L. Rainwater. 1993. "Going to Extremes: Income Inequality, Poverty and the U.S. Aged in an International Perspective." Unpublished manuscript, The Maxwell School, Syracuse University, Syracuse, NY.
Turner, John. A. 1997. "The Social Security Reform Debate," prepared for the Fourth International Research Seminar on Issues in Social Security in Sigtuna, Sweden, June.
Weaver, R. Kent. 1998. "The Politics of Pensions: Lessons From Abroad," presented at the National Academy of Social Insurance 10th Annual Conference, "Framing the Social Security Debate: Values, Politics & Economics," Washington, DC, January 29-30.

Electronic sources

United Nations Department for Economic and Social Information and Policy Analysis, Statistics Division
Centre for Social Policy, University of Antwerp, Belgium This site contains information on research in the fields of intergenerational transfers, poverty and the aging populations, social security and pension schemes, etc.

VII. Policy Analytic Approach

Public policy analysis is a craft, not a science. Policy-oriented research supports policy analysis. But in the end, one needs to apply the policy analysis to the problems of economics of aging: retirement, poverty, long-term care provision, etc. in a systematic way. That is, one must move from social problem to policy options, criteria for evaluating options and final policy recommendations.

Key Points and Concepts

policy analysis process
problem definition
policy goals
policy options or vehicles for achieving policy goals
criteria for evaluating options that help achieve goals
confronting the tradeoffs
final assessment of options

Print Bibliography

Bardach, Eugene. 1996. The Eight Step Path of Policy Analysis: A Handbook for Practice. Berkeley, CA: Academic Press.
Employee Benefit Research Institute. 1996. "A Framework for Analyzing and Comparing Social Security Policies." mimeo. December 27.
GAO. 1988. Children's Programs: A Comparative Evaluation Framework and Five Illustrations. Report No. GAO/PEMD-88-28BR. Washington, DC: GAO. August.
Quinn, Joseph F. 1997. "Criteria for Evaluating Social Security Reform," mimeo. Boston College.
Weimer, D.L. and A.R. Vining. 1992. "What is Policy Analysis?," Chapter 1(1-14); "Landing on Your Feet: How to Confront Policy Problems," Chapter 8 (201-243 and P. 258); from Policy Analysis: Concepts and Practice. Englewood Cliffs, NJ: Prentice-Hall.

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