Golden years? The impacts of New Zealand’s ageing on wages, interest rates, wealth and macroeconomy
AbstractNew Zealand is ageing. The number of old people will increase three-fold and will soon comprise a very large segment of society. Ageing will shrink the labour supply relative to the size of the population and the existing supply of capital. That has implications for wages and interest rates. Increased longevity should also affect savings decisions and labour force participation. In this paper we model these changes to put some numbers on their impact. While the population is ageing gradually, the impact on the mix of labour and capital that fuels the economy will be profound.
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Bibliographic InfoPaper provided by New Zealand Institute of Economic Research in its series NZIER Working Paper with number 2013/1.
Length: 24 pages
Date of creation: 01 Mar 2013
Date of revision:
ageing; New Zealand; demographics; labour force participation;
Find related papers by JEL classification:
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
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