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

Michael Kuhn and Klaus Prettner

No 462, GLO Discussion Paper Series from Global Labor Organization (GLO)

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.

Keywords: Demographic Change; Rising Life Expectancy; Pension Reforms; Long-Run Economic Growth; R&D; Innovation (search for similar items in EconPapers)
JEL-codes: J10 J26 O30 O41 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-age, nep-dem and nep-gro
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Citations: View citations in EconPapers (2)

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https://www.econstor.eu/bitstream/10419/213432/1/GLO-DP-0462.pdf (application/pdf)

Related works:
Journal Article: Rising Longevity, Increasing the Retirement Age, and the Consequences for Knowledge‐based Long‐run Growth (2023)
Working Paper: Rising longevity, increasing the retirement age, and the consequences for knowledge-based long-run growth (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:462

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