[Abstract] This paper studies the relationship between subjective survival probabilities, household wealth accumulation, and retirement decisions in China. It integrates insights from an extended Overlapping Generations (OLG) model, which predicts that higher subjective survival probabilities increase precautionary savings and delay retirement due to the need for old-age consumption and lower annuity returns. However, public pensions and intergenerational transfers mitigate this effect by reducing reliance on self-insurance. Empirical analysis supports these predictions. A one percent increase in subjective survival probability is associated with a 0.735 percent rise in total wealth. However, this effect is attenuated for individuals receiving public pension benefits, who accumulate 0.554 percent less wealth than those without pensions. Similarly, planned retirement age increases with a one percent increase in subjective survival probabilities by 0.019 years, but higher earnings reduce this responsiveness, suggesting that greater financial flexibility enables earlier retirement. These findings underscore the importance of public pension systems in shaping household financial behavior and highlight the policy implications of longevity misperception in aging economies.
[Abstract] This paper focuses on a global scale and examines the impact of labor market regulations on female labor force participation using a novel panel dataset of 117 countries over 40 years. We analyze how labor protection policies shape gender-specific labor market engagement, focusing on employment protection laws and working time regulations. Our findings indicate that stricter employment protection laws increase female labor force participation, suggesting that improved workplace conditions and job security encourage women's labor market entry, particularly in non-common-law and higher-income countries. Conversely, stronger working time regulations are associated with higher female unemployment, highlighting potential constraints on labor market flexibility. Furthermore, the effects of labor regulations vary by economic development level, with more pronounced adverse effects in developing economies. These findings underscore the trade-off between labor market rigidity and employment opportunities, emphasizing the need for balanced policies to enhance job security and gender equality.
[Abstract] Existing research on the organizational structures of government has generally overlooked its impact on environmental protection regimes. Using a flat hierarchy reform in China, we investigate the causal relationship between the flattening of environmental protection agencies and border water pollution. Our findings indicate that the flattening of environmental agencies significantly reduced water pollution at the border. Additionally, we examine three potential channels. The results reveal that the flattening reform affected border pollution by stimulating the awareness of local governments to protect against pollution, reducing collusion between government officials, and alleviating financial pressure on environmental monitoring budgets. These findings suggest that flattening environmental protection agencies in developing countries like China may be an effective approach to address border pollution caused by free-riding and official corruption.