Invisible Scars or Open Wounds? The Role of Mid-career Income for the Gender Pension Gap in Sweden

This study investigates the importance of mid-career income for the gender pension gap and psychological scarring effects of low income earlier in life. More specifically we analyse whether women's typically less stable mid-life careers also affect outcomes in late careers and in retirement. Swedish income register data from 1990, 2009, and 2015 was linked to the "HEalth, Ageing, and Retirement Transitions in Sweden" survey. The gender pension gap of 966 retirees and worries about pension income of 2,723 older workers between the age of 60 and 66 years were investigated. Blinder-Oaxaca decompositions were applied to analyse the gender pension gap and linear regressions were used for the analysis of financial worries. Results show that gender differences in mid-career income play a stronger role for the gender pension gap than late career income. Mid-career income is furthermore related to higher worries about pension income and accounts for observed gender differences. Our findings demonstrate that gender gaps in mid-career income can be regarded as an open wound with visible negative effects in older ages. The reformed pension system in Sweden may potentially contribute to an even greater gender gap in pensions.

Happiness and arousal: framing happiness as arousing results in lower happiness ratings for older adults

Older adults have been shown to describe their happiness as lower in arousal when compared to younger adults. In addition, older adults prefer low arousal positive emotions over high arousal positive emotions in their daily lives. We experimentally investigated whether or not changing a few words in the description of happiness could influence a person’s rating of their happiness. We randomly assigned 193 participants, aged 22–92 years, to one of three conditions (high arousal, low arousal, or control). In line with previous findings, we found that older participants rated their happiness lower when framed as high in arousal (i.e., ecstatic, to be bursting with positive emotions) and rated their happiness higher when framed as low in arousal (i.e., satisfied, to have a life filled with positive emotions). Younger adults remained uninfluenced by the manipulation. Our study demonstrates that arousal is essential to understanding ratings of happiness, and gives support to the notion that there are age differences in the preference for arousal.