What can China Expect from an Increase of the Mandatory Retirement Age?
Peter Stauvermann () and
Jin Hu ()
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Peter Stauvermann: Changwon National University, School of Global Business & Economics
Jin Hu: Changwon National University, School of Global Business & Economics
Annals of Economics and Finance, 2018, vol. 19, issue 1, 229-246
Because of an aging population, China is expected to raise the mandatory retirement age in order to mitigate the pressure on its pension system. Using an Overlapping Generations model we analyze the economic impacts resulting from an increase of the life expectancy and an increased retirement age on the pension system. The results show that it is ambiguous if an increasing retirement age will cause an increase or decrease of the pension benefits. We show that, the higher the share of capital income, the more probable it becomes that an increase of retirement age will exacerbate China's pension problems.
Keywords: China; OLG model; PAYG pension system; Fertility; Mandatory retirement age (search for similar items in EconPapers)
JEL-codes: D10 E62 H23 H55 J13 O15 O41 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2018:v:19:i:1:stauvermann:hu
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