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Later pensions, lower social capital?

Author

Listed:
  • Alessandro Cusimano

    (Department of Economics, Business and Statistics, University of Palermo)

  • Chiara Paola Donegani

    (Department of Finance, Accounting, and Economics, University of Wolverhampton Business School)

  • Stephen McKay

    (School of Social and Political Sciences, College of Social Science, University of Lincoln)

Abstract

Increases in working at older ages, linked to later ages at which public pensions are paid, have been shown to adversely affect individuals' physical and mental health and to reduce overall wellbeing. This study shows that later retirement also reduces social capital, affecting volunteering and caring activities. More specifically, using high quality micro-level panel data, we analyse the effects of the UK policy reforms that increased women's pension age from 60-66 between 2010-2020 on rates of volunteering, caring and group membership. Our results demonstrate that when public pensions could only be taken later, volunteering and care-giving activities decreased.

Suggested Citation

  • Alessandro Cusimano & Chiara Paola Donegani & Stephen McKay, 2022. "Later pensions, lower social capital?," Economics Bulletin, AccessEcon, vol. 42(4), pages 2150-2160.
    • Handle: RePEc:ebl:ecbull:eb-21-01027
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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I4-P177.pdf
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    References listed on IDEAS

    as
    1. Ludovico Carrino & Karen Glaser & Mauricio Avendano, 2020. "Later retirement, job strain, and health: Evidence from the new State Pension age in the United Kingdom," Health Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 891-912, August.
    2. Chiara Ardito & Roberto Leombruni & David Blane & Angelo d’Errico, 2020. "To Work or Not to Work? The Effect of Higher Pension Age on Cardiovascular Health," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 399-434, July.
    3. Staubli, Stefan & Zweimüller, Josef, 2013. "Does raising the early retirement age increase employment of older workers?," Journal of Public Economics, Elsevier, vol. 108(C), pages 17-32.
    4. Freeman, Richard B, 1997. "Working for Nothing: The Supply of Volunteer Labor," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 140-166, January.
    5. Cribb, Jonathan & Emmerson, Carl, 2019. "Can't wait to get my pension: the effect of raising the female early retirement age on income, poverty and deprivation," Journal of Pension Economics and Finance, Cambridge University Press, vol. 18(3), pages 450-472, July.
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    More about this item

    Keywords

    UK early retirement age reform; social capital; volunteering activities; informal/unpaid caring; group membership;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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