1. N ational T ransfer A ccounts 1 Consumption and Labor Income Profiles: Results Sang-Hyop Lee University of Hawaii at Manoa

2. N ational T ransfer A ccounts 2 Outline ► Results for Consumption (from An-Chi) ► Results for Labor Income ► Why do they differ across countries? ► Time-series Results

3. N ational T ransfer A ccounts 3 Attention ► All results are preliminary ► Sources of estimation are suppressed ► Not for citation ► Per capita values are divided by average per capita earnings of people ages 30-49 for comparison (normalized)

4. N ational T ransfer A ccounts 4 Consumption: Single Hump

5. N ational T ransfer A ccounts 5 Double Hump

6. N ational T ransfer A ccounts 6 Flat for Adults and Old Ages

7. N ational T ransfer A ccounts 7 Rising at Old Age

8. N ational T ransfer A ccounts 8 Labor Income: Thick Flat Tails

9. N ational T ransfer A ccounts 9 Steep at Old Ages

10. N ational T ransfer A ccounts 10 Steep at Early Ages

11. N ational T ransfer A ccounts 11 Start late, exit late

12. N ational T ransfer A ccounts 12 Why Differ across Countries?

13. N ational T ransfer A ccounts 13 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

14. N ational T ransfer A ccounts 14 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

15. N ational T ransfer A ccounts 15 Time-series and Cohort

16. N ational T ransfer A ccounts 16 Consumption, Taiwan, 1981-2003

17. N ational T ransfer A ccounts 17 Labor Income, Taiwan 1977-2003

18. N ational T ransfer A ccounts 18

19. N ational T ransfer A ccounts 19

20. N ational T ransfer A ccounts 20 Acknowledgement Support for this project has been provided by the following institutions: ► the John D. and Catherine T. MacArthur Foundation; ► the National Institute on Aging: NIA, R37-AG025488 and NIA, R01-AG025247; ► 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.

21. N ational T ransfer A ccounts 21 The End