Aging and automation in economies with search frictions
Xiaomeng Zhang (),
Theodore Palivos and
Xiangbo Liu ()
Additional contact information
Xiaomeng Zhang: Capital University of Economics and Business
Xiangbo Liu: Renmin University of China
Journal of Population Economics, 2022, vol. 35, issue 2, No 8, 642 pages
Abstract This paper investigates the impact of an increase in life expectancy on the level and the distribution of income in the presence of skill heterogeneity and automation. It shows analytically that an increase in life expectancy induces the replacement of low-skilled workers by automation capital and high-skilled workers. Moreover, it raises the skill premium and has an ambiguous effect on total income. A simulation exercise, based on US data, shows that an increase in life expectancy raises the level as well as the inequality of income. We consider redistributive policies that can mitigate some of the adverse effects of an increase in life expectancy for low-skilled workers.
Keywords: Life expectancy; Automation; Search and matching; Skill heterogeneity (search for similar items in EconPapers)
JEL-codes: J11 J24 J64 O33 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00148-021-00860-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: Aging and Automation in Economies with Search Frictions (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:jopoec:v:35:y:2022:i:2:d:10.1007_s00148-021-00860-3
Ordering information: This journal article can be ordered from
http://www.springer. ... tion/journal/148/PS2
Access Statistics for this article
Journal of Population Economics is currently edited by K.F. Zimmermann
More articles in Journal of Population Economics from Springer, European Society for Population Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().