Consumption and Labor Income Profiles Results SangHyop Lee
Consumption and Labor Income Profiles: Results Sang-Hyop Lee University of Hawaii at Manoa National Transfer Accounts 1
Outline ►Results for Consumption (from An-Chi) ►Results for Labor Income ►Why do they differ across countries? ►Time-series Results National Transfer Accounts 2
Attention ► All results are preliminary ► Sources of estimation are suppressed ► Not for citation ► Per capita values are divided by average per capita earnings of people ages 30 -49 for comparison (normalized) National Transfer Accounts 3
Consumption: Single Hump National Transfer Accounts 4
Double Hump National Transfer Accounts 5
Flat for Adults and Old Ages National Transfer Accounts 6
Rising at Old Age National Transfer Accounts 7
Labor Income: Thick Flat Tails National Transfer Accounts 8
Steep at Old Ages National Transfer Accounts 9
Steep at Early Ages National Transfer Accounts 10
Start late, exit late National Transfer Accounts 11
Why Differ across Countries? National Transfer Accounts 12
Consumption Income level matters § C on elderly is high in rich countries, and is mostly due to medical expenditures § C on children is low in low-income countries ► Public vs. Private C § Richer countries have larger public consumption expenditures, on both health and education. ► Data problems § CFD (durable) and CFR (housing) are not calculated in all economies ► NTA methods to allocate to individuals ► National Transfer Accounts 13
Labor Income Per capita labor income profile depends on several things. § Richer countries have low LFPRs for children and elderly § Richer countries have low share of self-employment income. § Old age productivity varies across countries. § Institution (legal age of work, mandatory schooling, minimum wage, seniority-based wage system) matters. ► Data problems § Measurement of self-employment income ► National Transfer Accounts 14
Time-series and Cohort National Transfer Accounts 15
Consumption, Taiwan, 1981 -2003 National Transfer Accounts 16
Labor Income, Taiwan 1977 -2003 National Transfer Accounts 17
National Transfer Accounts 18
National Transfer Accounts 19
Acknowledgement Support for this project has been provided by the following institutions: ► the John D. and Catherine T. Mac. Arthur Foundation; ► the National Institute on Aging: NIA, R 37 -AG 025488 and NIA, R 01 -AG 025247; ► the International Development Research Centre (IDRC); ► the United Nations Population Fund (UNFPA); ► the Academic Frontier Project for Private Universities: matching fund subsidy from MEXT (Ministry of Education, Culture, Sports, Science and Technology), 2006 -10, granted to the Nihon University Population Research Institute. 20
The End National Transfer Accounts 21
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