The elasticity of intertemporal substitution: new evidence from 401(k) participation

A key parameter in economics is the elasticity of intertemporal substitution (EIS), which measures the extent to which consumers shift total expenditures across time in response to changes in the effective rate of return. In contrast to the previous literature, which primarily has relied on Euler equation methods and generated a wide range of estimates, we show how a life-cycle-consistent econometric specification of employee 401(k) participation along with plausibly exogenous variation in rates of return due to employer matching contributions can be used to generate new estimates of the EIS. Because firms often cap the generosity of the match, employer matching generates nonlinearities in household budget sets. We draw on non-linear budget-set estimation methods rooted in the public economics literature, and using detailed administrative contribution, earnings, and pension-plan data for a sample of 401(k)-eligible households from the Health and Retirement Study, we estimate the EIS to be 0.74 in our richest specification, with a 95% confidence interval that ranges from 0.37 to 1.21.Elasticity (Economic) ; Consumer behavior ; Econometric models

Creative Challenge research report

The exploratory research tries to understand a tripartite relationship between the academic, the creative industry employer and the student and their expectations within it. The role of the student being an important one here in this mix as a embodying academic education and rigour, but also a potential future employee with appropriate enterprise skills. It further tries to understand how an entrepreneurship programme, such as the Creative Challenge, can add value in this relationship and explore its role. From feedback of those students who have participated in the Creative Challenge, we know that it had a whole range of perceived benefits, including the development of new skills, better learning strategies, increased confidence, a clearer understanding of how their creative skills can potentially be applied in the world outside university. Finally the research touches on the relationship between entrepreneurship education and creative arts education

Construction skills development in the UK : transitioning between the formal and informal

Research reported here is part of a wider study that seeks to examine the practices involved in encouraging and enabling employers to engage with the skills development agenda. A series of exploratory interviews and ethnographic observations reveal potential disconnections between skills policies at the governmental level and what actually happens in employer practices regarding skills development. On the one hand, the formal education and training system focuses on such targets as the attainment of narrowly-defined occupational standards, levels of competence, and quantitative performance measures like completion rates. On the other hand, the socialised concept of skills development takes place informally at the workplace through on-the-job training and mentoring relationships between senior and junior employees. Both the formal and informal systems appear to co-exist alongside each other, although tensions are mounting in terms of confidence that employers and the wider industry place on the efficacy of the formal system

Who's In Who's Out: A Look at Access to Employer-based Retirement Plans and Participation in the States

With the aging of the nation's population, a continuing decline in the availability of traditional pensions, and concerns about the future of Social Security, many workers in the United States worry that they won't have enough money set aside for their retirements. The Employee Benefit Research Institute's 2014 annual Retirement Confidence Survey found that only 22 percent of Americans are very confident that they will have enough money for a comfortable retirement, while 36 percent are somewhat confident. Twenty-four percent are not at all confident.In addressing these concerns, policymakers have emphasized the need to expand access to what are known as employer-sponsored defined contribution plans, such as 401(k)s. The ability of employees to contribute directly from their paychecks and the use of features such as automatic enrollment make the workplace an effective place to encourage saving. These employer-sponsored plans are how Americans now accumulate the vast majority of their private retirement funds, but large gaps in coverage exist.Today, only about half of workers participate in a workplace retirement plan, according to an analysis of data compiled by The Pew Charitable Trusts. Overall, 58 percent of workers have access to a plan, while 49 percent participate in one. Looking at the numbers a different way, more than 30 million full-time, full-year private-sector workers ages 18 to 64 lack access to an employer-based retirement plan.To help more people save for their later years, lawmakers in Congress have introduced retirement savings initiatives. Separately, President Barack Obama unveiled his "myRA" program in 2014 with a similar goal. As of Nov. 4, 2015, people without retirement plans can sign up to save through myRA. States are also acting to increase retirement savings. Lawmakers in more than half of the states have introduced measures to either create or study state-sponsored retirement savings plans for employees who don't have access to such a plan in the workplace. Illinois, for instance, established the Secure Choice Savings Program, which will start enrolling certain workers in new payroll-deduction retirement accounts by 2017. Washington state has created a marketplace in which small employers and the self-employed can shop for retirement plans

The Uninsured at the Starting Line: Findings from the 2013 Kaiser Survey of Low-Income Americans and the ACA

In January 2014, the major coverage provisions of the 2010 Affordable Care Act (ACA) went into full effect. These provisions include the creation of new Health Insurance Marketplaces where low and moderate income families can receive premium tax credits to purchase coverage and, in states that opted to expand their Medicaid programs, the expansion of Medicaid eligibility to almost all adults with incomes at or below 138% of the federal poverty level (FPL). The ACA has the potential to reach many of the 47 million Americans who lack insurance coverage, as well as millions of insured people who face financial strain or coverage limits related to health insurance. Though implementation is underway and people are already enrolling in coverage, policymakers continue to need information to inform coverage expansions. Data on the population targeted for coverage expansions can help policymakers target early efforts, provide insight into some of the challenges that are arising in the first months of new coverage, and evaluate the ACA's longer-term effects. The Kaiser Family Foundation has launched a new series of comprehensive surveys of the low and moderate income population to provide data on these groups' experience with health coverage, current patterns of care, and family situation. This report, based on the baseline 2013 Kaiser Survey of Low-Income Americans and the ACA, provides a snapshot of health insurance coverage, health care use and barriers to care, and financial security among insured and uninsured adults across the income spectrum at the starting line of ACA implementation. The report also examines how findings from the baseline survey can help policymakers understand and address early challenges in implementing health reform

Novel work-based learning courses in analytical sciences

The Open University (OU) is well known for the delivery of world class distance education. From 2010, the OU offers a new Foundation Degree in Analytical Sciences, developed to enhance the skills base of the workforce in analytical laboratories. It allows students to earn and learn simultaneously without taking time off. Students are sponsored by their employer and supported by an OU tutor throughout the four years of part-time study. 25 per cent of the degree comprises two work-based learning modules where the students learn in their laboratory setting and additional support is provided by a work-based mentor. The degree is interdisciplinary in approach with opportunities for specialisation in chemistry or biology. The first work-based module Analytical Sciences in Practice is central to the Foundation Degree and it is delivered primarily over the web with supporting text material. This course has been developed in consultation with the UK water industry and the Drinking Water Inspectorate that regulates public water supplies in England and Wales, and also consultants from the pharma and petrochemical industries. The course develops practical skills and understanding of the science underpinning analytical work. Students will learn information technology skills necessary to operate effectively in the modern workplace, and the numerical skills to carry out the calculations required in their job with accuracy and confidence. The module explains the regulations and science for safe working, enabling students to become safer practitioners. Considerable emphasis is given to understanding the importance of producing ‘fit for purpose’ analytical data and appreciating the need for quality assurance. Basic laboratory operations and techniques are developed using video clips and interactive assessment. Effective teamwork and communication are vital in an analytical laboratory and the course will help improve an individual’s proficiency in these areas. Finally, problem-solving skills are developed, alongside learning how to make evidence-based decisions. The second work-based learning module Developing your Analytical Science Practice is currently being developed along similar lines to the first module. Responsibility for learning is shared between the employer and the OU. The OU provides study materials and on-line tutorial support and manages the assessment procedures. The employer substantially manages the work-based learning on the programme and is responsible for assessing student’s competence to practice. The employer must guarantee to provide students with an appropriate physical environment in which to undertake their studies and a named workplace mentor. There are one-to-one meetings between student, OU tutor and workplace mentor and also OU tutors and mentors have informal contact throughout the course. The OU is also able to offer support in training staff identified as practice assessors in the workplace. The student remains in employment while they study