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Pension, Retirement, and Growth in the Presence Heterogeneous Elderly

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  • Makoto Hirono

    (Graduate School of Economics, Doshisha University)

  • Kazuo Mino

    (Graduate School of Economics, Doshisha University and Institute of Economics, Kyoto University)

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 overlapping 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 inspect the long-run effects of changes in key factors that determine the labor force participation of the elderly. While the main part of the study treats a neoclassical growth model, we also discuss a model with endogenous growth.

Suggested Citation

  • Makoto Hirono & Kazuo Mino, 2019. "Pension, Retirement, and Growth in the Presence Heterogeneous Elderly," KIER Working Papers 1010, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:1010
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    References listed on IDEAS

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    1. Partha Sen, 2020. "Postponing Retirement and Social Security in a Two Sector Model," CESifo Working Paper Series 8751, CESifo.

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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:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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