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Artificial intelligence: Redefining the retirement pattern

Author

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  • Aísa, Rosa
  • Cabeza, Josefina

Abstract

An endogenous economic growth model is developed, where the decisions to use artificial intelligences (AIs) in the workplace and to extend working life are endogenous and interdependent. There are four sources of heterogeneity among workers: differences in initial productivity, variations in the aging process, restricted access to jobs with AI investment, and uneven impact of AIs among those who have access. It is shown that those who do not use AIs in their jobs maintain a traditional pattern of retirement, with the most educated and/or healthy among them extending their working lives. In contrast, the retirement pattern for AI-using workers changes, and it is the users who derive the most benefit from AIs who will extend their working lives. This is because AIs compensate for the skills that tend to deteriorate with age, thus allowing for greater permanence in the labour market.

Suggested Citation

  • Aísa, Rosa & Cabeza, Josefina, 2025. "Artificial intelligence: Redefining the retirement pattern," Research in Economics, Elsevier, vol. 79(3).
    • Handle: RePEc:eee:reecon:v:79:y:2025:i:3:s1090944325000390
    DOI: 10.1016/j.rie.2025.101062
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    References listed on IDEAS

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