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Elderly Labor and Precautionary Saving

Author

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  • Masaya Yasuoka

    (School of Economics, Kwansei Gakuin University)

Abstract

In OECD countries, both life expectancy and elderly labor participation are increasing. The retirement age is being raised continually. The age at which pension benefits start is also being raised by governments. This paper presents an examination of how an increase in elderly labor participation affects saving and fertility in an endogenous fertility model with uncertainty of wage income during the old period. In the model with uncertainty, an increase in elderly labor time reduces savings. Thereby, fertility increases. However, without an increase in the average, an increase in the variance of wage income for elderly people increases savings and reduces fertility.

Suggested Citation

  • Masaya Yasuoka, 2019. "Elderly Labor and Precautionary Saving," Discussion Paper Series 193, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:193
    as

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp193.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Elderly labor; Fertility; Precautionary saving;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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