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Pension Reforms, Population Aging, and Retirement Decision of the Elderly in a Neoclassical Growth Model

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  • Hirono, Makoto
  • Mino, Kazuo

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 over- lapping 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 the retirement decision of the elderly. We then examine analytically as well as numeri-cally the long-run impact of labor participation of the elderly on capital accumulation.

Suggested Citation

  • Hirono, Makoto & Mino, Kazuo, 2020. "Pension Reforms, Population Aging, and Retirement Decision of the Elderly in a Neoclassical Growth Model," MPRA Paper 102467, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102467
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    References listed on IDEAS

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    More about this item

    Keywords

    retirement decision; labor force participation; population aging; pension system; capital accumulation;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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