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Rising longevity, increasing the retirement age, and the consequences for knowledge-based long-run growth

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  • Kuhn, Michael
  • Prettner, Klaus

Abstract

We assess the long-run growth effects of rising longevity and increasing the retirement age when growth is driven by purposeful research and development. In contrast to economies in which growth depends on learning-by-doing spillovers, raising the retirement age fosters economic growth. How economic growth changes in response to rising life expectancy depends on the retirement response. Employing numerical analysis we find that the requirement for experiencing a growth stimulus from rising longevity is fulfilled for the United States, nearly met for the average OECD economy, but missed by the EU and by Japan.

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  • Kuhn, Michael & Prettner, Klaus, 2020. "Rising longevity, increasing the retirement age, and the consequences for knowledge-based long-run growth," GLO Discussion Paper Series 462, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:462
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    4. David E. Bloom & Michael Kuhn & Klaus Prettner, 2024. "Fertility in High-Income Countries: Trends, Patterns, Determinants, and Consequences," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 159-184, August.

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    More about this item

    Keywords

    Demographic Change; Rising Life Expectancy; Pension Reforms; Long-Run Economic Growth; R&D; Innovation;
    All these keywords.

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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