Aging and the interaction between education, retirement and the working life
Population aging and the burden it imposes on state finances is one of the major economic challenges governments around the world face. Responses are formulated in terms of either increasing employment (for example by raising the retirement age) or increasing productivity (investment in education). This paper brings together these two responses in a unified framework and shows how the individual`s education and retirement decisions are affected by population aging - caused either by a fall in the population growth rate, or an increase in life expectancy - and the budget balancing mechanism of the public pension systems. We discuss how a budget balancing mechanism can be informed by fairness considerations and we show that early retirement can be the result of the application of Musgrave`s rule in response to a fall in fertility.
|Date of creation:||01 Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eytan Sheshinski, 2003.
"Optimum Delayed Retirement Credit,"
CESifo Working Paper Series
889, CESifo Group Munich.
- Rodrigo Soares, 2006. "The effect of longevity on schooling and fertility: evidence from the Brazilian Demographic and Health Survey," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(1), pages 71-97, February.
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:274. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Birds)
If references are entirely missing, you can add them using this form.