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In this paper, we investigate the relationship between financial wealth, reservation wages and labour market transitions. According to the theory, higher levels of wealth will result in higher reservation wages and lower employment probabilities. We test for the validity of this assumption by...
Persistent link: https://www.econbiz.de/10011092772
is noted that the theoretically correct measure of savings reflects that money as well as nonmonetary assets can serve as …
Persistent link: https://www.econbiz.de/10011092913
We study the impact of an anticipated "baby boom" in an overlapping generations economy.The rise of the working population lowers the wage, and the high demand for assets causes a rise in the price of capital which will be reversed when the baby boomers leave the work-force.However, the swings...
Persistent link: https://www.econbiz.de/10011090451
reinvestment. While most informal savings practices do not imply a lower likelihood of entrepreneurial reinvestment when compared … with formal savings practices, we find a significantly negative effect of saving within the household on the likelihood of …
Persistent link: https://www.econbiz.de/10011090491
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Since the early nineties, the Dutch tax system allows for a tax-favored form of risk free savings through employer …-sponsored savings plans (ESSPs).Under some conditions and up to a certain amount, the contributions to this plan are tax-deductible, and ….It suggests that those who have access to this type of savings should participate in them, provided they have some financial …
Persistent link: https://www.econbiz.de/10011090584
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We examine incomplete annuity menus and background risk as possible drivers of divergence from full annuitization. Contrary to what is often suggested in the literature, we find that full annuitization remains optimal if saving is possible after retirement. This holds irrespective of whether...
Persistent link: https://www.econbiz.de/10011090908
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