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Mortality transition and differential incentives for early retirement

Hippolyte dʼAlbis, Sau-Him Paul Lau and Miguel Sánchez-Romero
Authors registered in the RePEc Author Service: Hippolyte d'Albis

Journal of Economic Theory, 2012, vol. 147, issue 1, 261-283

Abstract: Many studies specify human mortality patterns parametrically, with a parameter change affecting mortality rates at different ages simultaneously. Motivated by the stylized fact that a mortality decline affects primarily younger people in the early phase of mortality transition but mainly older people in the later phase, we study how a mortality change at an arbitrary age affects optimal retirement age. Using the Volterra derivative for a functional, we show that mortality reductions at older ages delay retirement unambiguously, but that mortality reductions at younger ages may lead to earlier retirement due to a substantial increase in the individualʼs expected lifetime human wealth.

Keywords: Mortality decline; Incentive for early retirement; Years-to-consume effect; Lifetime human wealth effect (search for similar items in EconPapers)
JEL-codes: D91 J11 J26 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (30)

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Working Paper: Mortality transition and differential incentives for early retirement (2012) Downloads
Working Paper: Mortality transition and differential incentives for early retirement (2012) Downloads
Working Paper: Mortality transition and differential incentives for early retirement (2012) Downloads
Working Paper: Mortality transition and differential incentives for early retirement (2010) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:147:y:2012:i:1:p:261-283

DOI: 10.1016/j.jet.2011.11.004

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