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Economic Effect of Population Ageing and Pension Reforms

Author

Listed:
  • Evsey T. Gurvich

    (Economic Expert Group, Moscow 109012, Russia; Financial Research Institute, Moscow 127006, Russia)

  • Maria A. Ivanova

    (Economic Expert Group, Moscow 109012, Russia; Financial Research Institute, Moscow 127006, Russia)

Abstract

The paper considers impact of population ageing on the economic growth and sustainability of pension systems. The analysis demonstrates that ageing has negative effect on the labor force and labor productivity, and thus results in a slowdown of economic growth and an increase of public spending. The most effective policy option is to raise the retirement age, while an increase in contribution rates or other taxes is the worst reaction. This recommendation is relevant for any countries at different stages of aging process, for all types of pension systems, for different demographic scenarios. Simultaneously with the raising of the retirement age, it is necessary to implement the policy aimed at improvement of the human capital quality.

Suggested Citation

  • Evsey T. Gurvich & Maria A. Ivanova, 2018. "Economic Effect of Population Ageing and Pension Reforms," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 9-22, October.
    • Handle: RePEc:fru:finjrn:180501:p:9-22
    DOI: 10.31107/2075-1990-2018-5-9-22
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    References listed on IDEAS

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    Cited by:

    1. Evsey T. Gurvich, 2019. "Long-Term Global Trends in Pension Policy," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 9-26, December.
    2. Gurvich, E., 2019. "Pension Policy and Population Ageing," Journal of the New Economic Association, New Economic Association, vol. 42(2), pages 177-186.
    3. Danielyan, V. & Polterovich, V., 2019. "The Adventures of Pension Reform in Russia: Where Are the Mistakes?," Journal of the New Economic Association, New Economic Association, vol. 42(2), pages 186-194.

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    More about this item

    Keywords

    population ageing; pension reform; retirement age; economic growth;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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