Population aging, education and skill premium in international trade

Xiao Chen and Alan Woodland

No 2015-03, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: This paper is primarily concerned with the impacts of population aging upon education and skill premium. To study population aging, we utilize an overlapping-generation model where survival into the old stage is uncertain and population aging is modelled via a higher survival rate. Featuring the household, education and production sectors, our model is analysed under both autarky and two-country trade environments. Under autarky, we find that population aging encourages educational efforts and decreases skill premium. In contrast, under the two-country trade environment, population aging in one country encourages domestic education while discourages education of the other country. Moreover, in our classical trade framework without skill biased technical change, we find that population aging increases skill premium in all countries. Our study provides a new explanation for the observed skill premium rises over recent decades.

Keywords: Population Aging; Education; Technological Progress; Skill Premium (search for similar items in EconPapers)
JEL-codes: F11 J11 O30 O33 (search for similar items in EconPapers)
Date: 2015-02-20
Note: 論文データ（PDF）を取り下げ。[2016/9/16], Withdrawn PDF data on Sep. 16, 2016
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:2015-03

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