Pension, Retirement, and Growth in the Presence Heterogeneous Elderly

Hirono, Makoto and Mino, Kazuo (2019): Pension, Retirement, and Growth in the Presence Heterogeneous Elderly.

Abstract

This study explores the linkage between the labor force participation of the elderly and the long-run performance of the economy in the context of a two-period-lived overlapping generations model. We assume that the old agents are heterogeneous in their labor efficiency and they continue working if their income exceeds the pension that can be received in the case of full retirement. We first inspect the key factors that determine the labor supply of old agents. We then examine analytically as well as numerically the long-run impact of labor participation of the elderly on capital accumulation.

• Item Type: MPRA Paper
• Language: English
• Keywords: retirement decision, labor force participation, population aging, pension system, capital accumulation
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy

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