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Population Aging and Income Inequality in a Semi-Endogenous Growth Model

Author

Listed:
  • Kazuo Mino

    (Institute of Economic Research, Kyoto University)

  • Hiroaki Sasaki

    (Graduate School of Economics, Kyoto University)

Abstract

Using a continuous-time overlapping generations model with semi-endogenous growth, this study examines the impact of population aging on inequality. We characterize the stationary distribution of income and wealth among households and investigate how an increase in life expectancy and a decrease in birth rate affect the distributional profile. The numerical experiments revealed that an increase in life expectancy lowers inequality, whereas a decrease in birth rate increases inequality. We also consider extended models with exogenous productivity growth, agents' retirement from labor participation, and endogenous labor supply.

Suggested Citation

  • Kazuo Mino & Hiroaki Sasaki, 2023. "Population Aging and Income Inequality in a Semi-Endogenous Growth Model," KIER Working Papers 1096, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:1096
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    References listed on IDEAS

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    More about this item

    Keywords

    population aging; semi-endogenous growth; overlapping generations model; income and wealth inequality; Pareto distribution;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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