The effect of the financial crisis on the retirement plans of older workers in England

Crawford, Rowena

doi:10.1016/j.econlet.2013.07.024

Cited by 27 publications

(12 citation statements)

References 25 publications

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“…We then consider three margins on which an individual could adjust to these wealth changes, by estimating the effect of these wealth losses on individuals" current consumption, their expectations of the likely inadequacy of resources in future and their expectations of leaving a bequest. The effect of these wealth losses on another potential margin of adjustment, the planned retirement age is investigated in Crawford (2011), which found that in general individuals did not respond by delaying their planned retirement. The effect on individuals" health is a subject of our ongoing research.…”

Section: Discussionmentioning

confidence: 99%

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The effect of the financial crisis on older households in England

Banks¹,

Crawford

Crossley³

et al. 2012

Working Paper Series

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may James Banks University of Manchester and IFS Rowena Crawford IFS Thomas Crossley Koç University, University of Cambridge and IFS and Carl Emmerson IFS October 2012Abstract: Prices of real and financial assets fell substantially in the UK during 2008-09. The fourth wave of the English Longitudinal Study of Ageing (ELSA) was in the field throughout this "financial crisis". We use these data and earlier ELSA waves first to document the effect of the crisis on the finances of those aged 50 and over in England, and second, to estimate the effect of wealth shocks on household consumption and individual expectations of the future. Many households experienced a significant wealth shock, but these shocks led to modest spending effects and small revisions to expectations regarding future bequests. Expectations of bequests seem particularly tied to housing wealth. JEL codes: D12, D14, E21, G01, G11

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Section: Discussionmentioning

confidence: 99%

“…Crawford (2011) studies the effects of the same wealth shocks on retirement intentions, finding that individuals in general did not respond to these shocks by delaying their planned retirement age. In ongoing work we are examining the effect of these shocks on health and wellbeing.…”

Section: Introductionmentioning

confidence: 99%

The effect of the financial crisis on older households in England

Banks¹,

Crawford

Crossley³

et al. 2012

Working Paper Series

Self Cite

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“…They are also likely to anticipate that their existing stock of housing wealth may grow in value over time due to the overall relative growth in the price of housing, and understand that house 2 For related studies based on UK data see Disney, Ratcliffe and Smith (2013) and Crawford (2013) prices are broadly pro-cyclical in nature. Figure 1 illustrates the pro-cyclicality of house prices in the UK using de-trended data.…”

Section: Modeling Strategymentioning

confidence: 99%

House prices, wealth effects and labor supply

Disney¹,

Gathergood²

2014

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We examine the impact of housing wealth on labor supply decisions using data on exogenous local variation in house prices merged into household panel data for Britain. Our estimates are conditioned on variations in local labor demand and income expectations as these may co-determine housing wealth and labor supply. We use renters as a control group and test for the potential endogeneity of tenure and location. We find significant housing wealth effects on labor supply among young married / co-habiting female owners and older male owners, consistent with leisure being a normal good. The size of these effects is economically important. Our estimates imply housing wealth effects have stronger effects then local labor market conditions upon participation decisions for these workers.

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“… One of the authors of that paper has also applied the idea of using changes in wealth from asset‐price shocks to instrument changes in wealth, in an analysis of the impact of wealth shocks on retirement plans; see Crawford (). …”

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confidence: 99%

Consumption Responses to a Large Shock to Financial Wealth: Evidence from Italy

Bottazzi

Trucchi

Wakefield

2019

Scandinavian J Economics

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We estimate marginal propensities to consume from wealth shocks. We exploit large asset‐price shocks in 2007–2008 and household‐level panel data to implement instrumental variables. A fall of one euro in risky financial wealth resulted in cuts to annual total (non‐durable) consumption of 8.5–9 (5.5–5.7) cents, with small effects on food spending. Effects seem stronger for lower‐wealth or indebted households, but significant responses from wealthier households and those without mortgages are important for our baseline results. Counterfactuals indicate financial‐wealth effects were relatively important for consumption falls in Italy in 2007–2008. The estimated effects are consistent with a simulated life‐cycle model capturing the wealth shock.

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The effect of the financial crisis on the retirement plans of older workers in England

Cited by 27 publications

References 25 publications

The effect of the financial crisis on older households in England

The effect of the financial crisis on older households in England

House prices, wealth effects and labor supply

Consumption Responses to a Large Shock to Financial Wealth: Evidence from Italy

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