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Golden years? The impacts of New Zealand’s ageing on wages, interest rates, wealth and macroeconomy

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  • Kirdan Lees

    (New Zealand Institute of Economic Research)

Abstract

New Zealand is ageing. The number of old people will increase three-fold and will soon comprise a very large segment of society. Ageing will shrink the labour supply relative to the size of the population and the existing supply of capital. That has implications for wages and interest rates. Increased longevity should also affect savings decisions and labour force participation. In this paper we model these changes to put some numbers on their impact. While the population is ageing gradually, the impact on the mix of labour and capital that fuels the economy will be profound.

Suggested Citation

  • Kirdan Lees, 2013. "Golden years? The impacts of New Zealand’s ageing on wages, interest rates, wealth and macroeconomy," NZIER Working Paper 2013/1, New Zealand Institute of Economic Research.
    • Handle: RePEc:ris:nzierw:2013_001
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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