On the long-run growth effect of raising the retirement age

Michael Kuhn and Klaus Prettner

No 10/2016, ECON WPS - Working Papers in Economic Theory and Policy from TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit

Abstract: We show that the long-run economic growth effect of an increase in the retirement age is unambiguously positive in research and development based endogenous growth models. This contrasts recent findings based on models of learning-by-doing-spillovers, in which an increase in the retirement age reduces physical capital accumulation and thereby economic growth. Our results imply that models based on learning-by-doing-spillovers, which are often used as a short-cut formulation for research and development based growth models, do not necessarily lead to similar policy conclusions.

Keywords: demographic change; pension reform; long-run economic growth; R&D-based growth (search for similar items in EconPapers)
JEL-codes: J10 J26 O30 O41 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-age and nep-gro
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuweco:102016

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