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OCR for page 250
The Relation of Housing and
living Arrangements to the
Productivity of Older People
James N. Morgan
The relevant literature on the relation of housing and living
arrangements to the productivity of the elderly is diverse and
often only marginally on target. A few items will be discussed,
but a more extensive bibliography is provided at the end of this
paper in which the titles are usually adequate for sorting. There
is a large economics literature on the decision to retire from
paid market work. In that area, the facts are gradually defeat-
ing the stereotypes, showing that retirement is both desired by
most people and good for them. Most people retire as soon as
they can afford to or when poor health or job obsolescence forces
them to (Barfield and Morgan, 1969; Morgan, 1981a; Palmore?
1985, Parnes, 1981; Streib and Schneider, 19711. If there is to be
an increase in productive activity by older people, it seems likely
that it will not occur through a later retirement from regular
jobs.
A second, much thinner stream deals with unpaid work vol-
unteer work or helping others in which the evidence is that
although people expect to do more of it when they retire, they
do not report, after they retire, that they are doing more of it
(Barfield and Morgan, 19691.
James N. Morgan is program director and professor of economics, Institute for
Social Research, University of Michigan.
250
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THE RELATION OF HOUSING TO PRODUCTIVITY
251
The stereotype that it is bad for older people to be "segre-
gated" in communities of older people, like the stereotype that
retirement is bad for people, has persisted in the face of contra-
dictory evidence. One might discount the expressed attitudes or
argue that the same stereotype affects the attitudes of older
people when they opt for heterogeneous communities. Yet the
data on activity and satisfaction levels of older people in various
types of communities are also in favor of the age-homogeneous
areas and are more convincing. They might, of course, exagger-
ate the difference because of selection biases that is, if those
who move to such communities do so because they expect to like
them and be active in them. At a minimum, as Lawton has
suggested, there is a substantial fraction of older people who
would like to be in age-uniform communities (Lawson et al.,
1984; Lawton et al., 1980; Rosow, 19671. Research and designs
for environments for the frail elderly or for communities of the
elderly have been extensively covered and summarized by
M. Powell Lawton (Canter and Canter, 1979; Kasl, 1977;
Koncelik, 1976; Lawton, various).
A burgeoning attention to care-giving, both institutional and
by family or friends, reflects the nursing home crisis and the
explosion of actual and threatened medical costs. It tends to
focus on assessing the strain on people who provide care and on
the relation of that strain to the decision to send the frail into
nursing homes or other institutional care (Morycz, 1985; Silver-
stone, 19851. The finding that women care-givers report more
strain than men may be another example of selection bias if
women are more likely than men to be forced into such roles by
the expectations and rules of society and the demographic facts
of life. Interestingly enough, it is difficult to find in the studies
of strain any attention to what apparently is the fact that many
elderly with mental problems provide more difficulties for their
spouses than for anyone else.
Finally, there is research on the design of the physical environ-
ment, which focuses almost entirely on increasing the efficiency
and capacity for self-care or for professional care and not on the
encouragement of care-giving by other older people (Koncelik,
1976; National Policy Center, no date).
If one asks about environments that might encourage produc-
tive activity on the part of older people, much of the literature
does not appear relevant because it focuses productivity discus
OCR for page 252
252
JAMES N. MORGAN
signs on paid market work; the rest of the literature focuses
attention on the delivery of services to the elderly or at most on
facilitating more self-care. Surprisingly, this lack of breadth oc-
curs at a time when we have a growing group of elderly, many
of whom are reasonably fit, and yet the care of those who are
not is provided either by one long-suffering, underrewarded
spouse or by expensive professionals in expensive surroundings
who provide many unnecessary services.
PRODUCTIVITY BROADLY CONSIDERED
We must expand our concept of productivity to include any-
thing that produces goods or services. They need not be market-
able, so Tong as they reduce the demand on goods or services
produced by others. Even self-care is productive if the person
might otherwise have required someone to provide that care.
The potential for productive activities outside the usual paid
employment by older people is both relatively and absolutely
important.
The productivity of older people is a large and growing issue
because the sheer number of relatively healthy older people is
growing, and there is no evidence that they really want to stay
longer in the paid labor force or that the younger workers want
them there. Indeed, retirement from regular jobs is widely de-
sired and enjoyed. Economists have recently discovered that it is
not Social Security that induces early retirement but company
pension schemes and the giving out of people's health or their
jobs. Yet other kinds of productive activity, more flexibly sched-
uTed and more discretionary, are a real possibility. The inequal-
ity among people in each generation increases as they age, leav-
ing some hate and hearty and others in poor health. It is the
potential demand of some older people for labor-intensive serv-
ices, including nursing, that raises the question of whether or
not others of them could provide many of those services. (Cur-
rently, unduly burdensome demands are often placed on spouses.)
Economists state that all issues of economic policy contain
considerations of efficiency (resource allocation) and equity (fair-
ness or redistributional effects). We must be careful in talking
about increasing the productivity of older people to ask whether
we are also increasing transfers to them by subsidizing activi-
ties or whether we are reducing their relative well-being by
OCR for page 253
THE RELATION OF NO USING TO PRODUCTIVITY
253
expecting them to do things without adequate compensation.
Some older people do volunteer work, but coerced unpaid work
is a form of taxation. Hence, we seek neutral policies that nei-
ther tax nor subsidize but that open up new options or opportu-
nities and remove barriers.
There are three kinds of barriers that inhibit the productive
activity of older people: (1) economic and legal, (2) social and
organizational, and (3) environmental. I intend to discuss the
third, namely, the effect of the built environment, housing and
neighborhood, on the productivity of older people. But I must
preface that discussion with a few words about the other two
areas because we are talking about potentially substantial
changes in people's behavior. It is well known that changing
behavior requires multiple and powerful motivations, particu-
larly among older people who have had a lifetime to become "set
in their ways." We senior types have difficulty making up our
minds, much less changing our way of life. On the other hand,
we have fewer liquidity constraints. I know some people in Sun
City West who are building a church with loans of $10,000 from
each of the prospective new members. Indeed, there is some
urgency in developing better designs for living arrangements for
older people because many of them right now are committing
themselves to investments in communities that, at least from
the point of view of encouraging productive activities, are very
badly designed.
What little research has been done has tended to follow the
usual scientific paradigms of varying one thing at a time or at
the least varying a few things in some kind of experimental
design that is orthogonal so that the manipulated variables are
uncorrelated. Yet if one sees real results only when all of the
multiple motivations are in place and all of the major barriers
are reduced, then such experimentation is a formula for failure,
or at least for "proving" that each component does no good. The
suggestions provided later in this paper may seem grandiose,
but this may well be an area in which one must "think big" or
fail.
Furthermore, we live in a changing and complicated world,
and people are complex organisms. Hence, the success of any
new physical or social or economic arrangements depends on
their flexibility and on their capacity to adapt and solve the
many unexpected problems that will arise. Our tradition of sci
OCR for page 254
254
JAMES N. MORGAN
entific experimentation must give way to trials not of rigidly
predefined inputs but of problem-solving mechanisms. There are
additional persuasive reasons for this approach. It is an insult
to any group of people to experiment on them, but it is a compli-
ment to provide new options and encourage them to get together
and work out optimum new arrangements. There is very con-
vincing research to show that offering older people more control
over their environment and more opportunities will increase
their activity level and even their indicators of health. We shall
end by proposing a meta-experiment, trying out whole new fIex-
ible, self-regulated communities so that if some succeed we shall
know what kind of living, problem-solving mechanisms show
promise and not just what particular set of solutions worked in
one situation.
It is our conviction that, to attract people to new opportunities,
it may be necessary to change their social or organizational
environment, their economic arrangements, and their physical
or built environment. Each of the three depends on the others
for its success. Consequently, let me postpone a discussion of the
physical environment for just a little longer and briefly describe
the economic and social structures or arrangements that ~ be-
lieve would have to accompany the better built environment if
it were to work. ~ shall also indicate what those optimal arrange-
ments imply about the required physical environment.
THE ECONOMIC ENVIRONMENT
We need economic arrangements that provide incentives and
rewards for productive activities but that (lo not produce further
inequities among a group that is experiencing widely diverging
economic paths in any case. Inequality increases with age-
inequaTity in income, wealth, and health. Hence, substantial
economic incentives for those who are able to take advantage of
them can seem like punishment to those who cannot. Most peo-
ple in paid employment are relatively overpaid in their later
years, and employers want to replace them with younger people
with more energy and flexibility and Tower salaries. Indeed,
another of the stereotypes that is only slowly being dispelled by
the facts is that Social Security encourages early retirement. In
fact, it is the private pension plans that are twisted to reward
those who retire early and punish those who stay on; Social
OCR for page 255
THE RELATION OF IIO USING TO PRODUCTIVITY
255
Security, particularly after the 1984 amendments, is actuarially
unfair to those who retire early and provides undue rewards to
those who keep working. This situation occurs despite the fact
that many who retire early do so unavoidably because their
health gives out or their job skills become obsolete, whereas
many who continue to work are in pleasant, well-paid jobs they
enjoy (Maxfield, 1985; Packard, 1985; Sherman, 19851.
~ should propose for communities of older people a new alter-
nate currency to be used for facilitating exchanges of services
and helping each other. It is well known among economists that
money (currency) facilitates exchange as well as providing a
store of value that can be saved. It frees us from the constraints
of barter, which would require us to stay in bilateral balance
with each other individual. It facilitates the development and
publication of market-clearing prices that can themselves re-
duce haggling and exploitation. It reveals real needs while dis-
couraging undue demands. Many baby-sitting cooperatives use
paper money to avoid the need to pay a secretary to make calls
and keep the books. All one needs in such a group is a list of the
members and rules against accumulating too much of the cur-
rency. Such cooperatives easily develop special prices in their
currency for extra children in the house or for sitting after 11
p.m. in the evening. Because the currency is good for hours and
not dollars, it does not depreciate. ("Prices" would, of course, be
adjusted according to the amount of skill the help required.)
Finally, by giving everyone an initial stock of the alternative
currency, a certain initial equality is introduced even among
people with wide differences in wealth and money income.
There is then an easy set of subsequent improvements: first,
to have a small community tax in such currency so people can
be paid for doing things for the community; then an insurance
arrangement by which for an annual payment one can have
emergency needs covered without running out of the currency;
and finally, an annuity arrangement by which larger, early an-
nual payments build a reserve to pay for the greater needs when
one is very old.
Why not use ordinary money? Because it is taxable, because
the "wages" in the new currency will be different, because a
measure of altruism is involved, and because everyone starts out
with the same initial stock of the new currency, reducing in-
equaTities. As the currency is in units of hours of work adjusted
OCR for page 256
256
JAMES N. MORGAN
for skill levels, it does not depreciate indeed, its value goes up
as real wages go up. Why any currency? Because it allows mul-
tilateral exchange one need not stay in a balance of services
given and received with each other individual. Others have dis-
cussed coordinating arrangements, and barter, and even a helper
bank or "skills bank" (Goodman, 1984; Noberini and Berman,
1983; Pynoos, 19841. There has even been discussion of insurance
arrangements, although not of an actual currency (Goodman,
19841. There is some research on attribution, which argues that
rewards for good deeds erode the sense of altruism one attributes
to oneself, but partial recognition in a new form should serve as
an added incentive, and the increased sense of equity and bal-
ance are surely desirable. Indeed, there is now some research
indicating that the opportunity to reciprocate encourages help-
seeking behavior (Nadler et al., 19851.
If a community is to rely on its own internal markets to set
prices for various productive activities, then there would have to
be some system for keeping track of the prices being paid. Thus,
at the beginning, it would be useful to start with some initial
levels of those prices from which departures could be made.
Services performed for others or for the community might ini-
tially be considered worth one "&" (if that is what we decide to
call the new shadow currencyJ per quarter hour of unskilled
time, plus a fourth of an "&" per mile driven transporting some-
one or running errands.
Another aspect of such economic arrangements would be a
flexible choice as to how much money each individual invests in
the community. Those with available assets and a desire to keep
the tax advantages designed for home owners could make con-
dominium-like arrangements with a large investment, taking
tax deductions for their share of interest and taxes and achiev-
ing tax-free rent savings and a low monthly rental fee. Others
might have almost nothing to invest and pay a high rental. And
it should be possible to allow those with investments to consume
them gradually by paying a Tower rental, essentially by convert-
ing the investment into an annuity. There would, however, have
to be a substantial flexible umbrella mortgage because most
people could not invest much in the new community until they
had sold their homes and moved. The amount of the mortgage
would be large, at least temporarily, but the risk would be small
OCR for page 257
THE RELATION OF HOUSING TO PRODUCTIVITY
257
because such a development would be attractive solely as a con-
dominium project, even without the organization and other fea-
tures designed to encourage productive activity.
In all of this, of course, an essential ingredient is flexibility,
the capacity to change and adapt, and the involvement of the
members in problem solving and managing. Indeed, a major
productive activity for some members would be their contribu-
tion of time, energy, and expertise to solving the unpredictable
problems that are bound to arise. Some of these problems would
be legal as well as economic such as securing the right to re-
ceive government payments for home nursing care, for example,
and assuring favorable tax treatment of investments and of
"earnings" from helping one another or the community.
Finally, if the shadow currency were to be used to tax members
and pay for community services, and also to set up insurance
and annuity arrangements allowing scheduled payments to cover
unavoidable needs and heavier needs at older ages, then expert
actuarial help would be needed, as well as clearance with the
insurance regulations of the state. Note that an annuity-type
arrangement would require a lump sum payment from new
members who were joining at older ages because they would not
have made the usual surplus payments in their earlier years
that allow a flat set of payments to cover the higher risks later.
Such a system would dramatize and quantify the need to main-
tain an age balance by starting with a wide age spread and then
recruiting mostly young replacements.
It should be noted that these economic arrangements would
only work well in cases in which there was excellent communi-
cation and an organizational structure to develop the rules, post
the going prices, set up the pseudo insurance-annuity company,
arrange the financing, and so forth. In addition, the economic
exchanges of services surely require easy access access to any
other member of the group in a few minutes and without going
outside in the cold or rain.
THE SOCIAL-ORGANIZATIONAL ENVIRONMENT
We need social-organizational arrangements because many of
the productive activities that are most likely to result are serv-
ices to the community or to other individuals, both of which
OCR for page 258
258
JAMES N. MORGAN
require information, communication, and social support mech-
anisms. People need to know one another, to make new friends
as the old ones die off, to be able to provide the kind of wise help
only a friend can provide. And in starting any new activity
indeed, even in joining a new community-people need direct,
personal encouragement and help. Transitions are difficult, par-
ticularly if they involve moving from the old family home and
neighborhood, however inappropriate they were and however
few friends remained there.
The socialization of new members into such a community
would involve more than simply helping them make the trau-
matic move and adjust to a new set of norms and relationships.
Such new members would also need training in providing social
support for others and in certain skills such as nursing care,
which are sure to be in demand in such a community. Indeed a
major advantage of this type of community would be the poten-
tial for spreading the burden of care among many people rather
than concentrating it on a single spouse or close relative. The
gerontological literature is full of studies of the strain of care-
giving and the resulting demand for nursing home care merely
to relieve the strain and not because highly skilled nursing is
needed (Morycz, 1985; Silverstone, 19851. Providing social sup-
port also requires skills most of us must acquire. Social support
means more than just affective support and friendship; it also
means an affirmation of the worth of the other person and aid
tailored to the person's needs. Developing new friendships is
increasingly difficult as one gets older, and one cannot expect to
like everyone in any community. But the focus on doing things
for others, and being rewarded with both thanks and payments
so that no one feels in debt, would help. In addition, the variety
of jobs organizing and keeping track of such activities and arrang-
ing deals would itself facilitate getting to know and like people.
Many of the services members would do for each other are
currently provided either by professionals (although most of
what is done even in a nursing home is not highly skilled) or by
spouses. The economic advantage of reducing the use of highly
paid (insurance-bloated) professionals on the one hand and the
psychic advantage of reducing the excess burden on spouses on
the other should be clear.
Again, it is necessary to stress the need for flexibility and
OCR for page 259
THE RELATION OF HOUSING TO PRODUCTIVITY
259
problem solving as such a community develops. The history of
most successful institutions and communities is a history of the
smart solving of a variety of unpredictable problems and emer-
gencies. It would probably be ideal to start with a number of
two-generation pairs of member families, one in their sixties
and one or more of their parents in their eighties or nineties,
with separate dwellings but able to share burdens. (It is often
easier to deal with helping a nonrelative, particularly in more
extreme situations such as memory loss.) Should the same eco-
nomic arrangements and "prices" apply to the two-generational
helping relationships? The answer is probably yes.
How much recor~keeping and monitoring of prices is needed
to ensure convergence on market clearing norms? ~ feel sure the
community would be able to work such things out. It is likely,
however, that there would have to be at least 200 people involved
in order to have a variety of skills, needs, time schedules, and
enough transactions to establish norms ("prices"~. There are
many issues to be decided: for example, what about visitors, who
will range from friends to relatives to noisy grandchildren to
nosy observers of this new experiment? The community itself
will have to decide how to protect itself from excessive costs in
disruption and perhaps excessive self-consciousness that might
come from becoming a news item. Although the community
would want to keep some intimate connections with the larger
surrounding community, it would also want protection and pri-
vacy, particularly from the more noxious aspects of society.
Surely it would appear useful to have barriers to keep burglars
out and keep some forgetful members from wandering off. In-
deed, the best protection against unwanted intruders may well
be the development of a community in which everyone knows
everyone else well and even recognizes their neighbors' family,
friends, and visitors.
As with the social-organizational environment, these eco-
nomic arrangements might be possible among a set of dispersed
families, but they would surely be more likely to succeed if
people were in easy contact, had regular, casual interactions
with others, shared some space and equipment, and could easily
keep up with everything that was going on. Thus, the built
environment may be a crucial element in facilitating the produc-
tive activity of older people.
OCR for page 260
260
JAMES N. MORGAN
THE BUILT ENVIRONMENT
Finally, then, we come to the built environment. If the eco-
nomic and social arrangements of the aging are to be improved,
what is there about the physical environment that matters? It
seems obvious that a major barrier to most of the productive
activities ~ have been talking about, except perhaps some gar-
dening and home maintenance, is remaining in an isolated sin-
gle-family home. It reduces communication and contact and
makes giving or receiving help difficult because it requires
transportation and communication. It is also wasteful of re-
sources to have very large homes occupied by one or two people,
even if they only heat part of them in the winter. Yet the famil-
iar is difficult to give up, even if the economic arrangements in
a new environment could mimic those to be had with single-
famiTy homes.
In a design workshop with students given an assignment to
design such a physical environment, it took a quantum change
in their orientation (away from a focus on auto traffic and park-
ing and the aesthetic aspects of design) before they could achieve
success. They were not used to asking what would facilitate each
person's access to others or reduce barriers to potentially produc-
tive activities. There was some uncertainty about whether peo-
ple would respond favorably to such notions as clothes washers
and dryers shared by a few nearby units-to facilitate friendly,
casual meetings and the making of friends as well as doing a
neighbor's wash when he or she was ill because we are all so
used to total access and no sharing of such equipment. Similar
issues will arise with any shared equipment or shared space. In
terms of shared space, economists believe that putting prices on
things helps allocate them fairly and efficiently. Thus, as an
example, groups could get together and rent space for their
meetings. Only experience would tell whether such tests of need
were necessary to avoid conflict.
A major issue is the relative amount of space devoted to com-
mon or group use. Clearly, in a community of several hundred
units, every square foot of private space given up by each family
frees up several hundred square feet of common space. Decisions
would have to be made about how to divide the common space
among subgroups defined physically (one wing) or by interests
(garden space, swimming pool).
OCR for page 270
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Representative terms from entire chapter:
social support
