Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility
Using a stochastic general equilibrium model with overlapping generations, this paper studies a policy rule for the retirement age aiming at offsetting the effects on the supply of labor following fertility changes. The authors find that the retire...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100727134920 http://hdl.handle.net/10986/3867 |
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okr-10986-38672021-04-23T14:02:13Z Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility Jorgensen, Ole Hagen Jensen, Svend E. Hougaard AGGREGATE INCOME ALLOCATION OF RESOURCES BABIES BABY BABY BOOM BUSINESS CYCLE CAPITAL INVESTMENT CHANGES IN FERTILITY CONSUMPTION INCREASES CONTRIBUTION RATE DEBT DECLINE IN FERTILITY DECLINES IN FERTILITY DEMOGRAPHIC TRENDS DEPENDENCY RATIO DEPENDENCY RATIOS DISCOUNT RATE DOWNWARD PRESSURE EARLY RETIREMENT ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC THEORY ELASTICITY ELASTICITY OF SUBSTITUTION ELDERLY ENDOGENOUS VARIABLES EXOGENOUS SHOCK EXOGENOUS VARIABLE FERTILITY FERTILITY DECLINE FERTILITY RATE FERTILITY RATES FUTURE RESEARCH GENERAL EQUILIBRIUM GROSS RETURN GROWTH RATE HUMAN CAPITAL IMPERFECT COMPETITION INDEXATION INNOVATIONS LABOR ECONOMICS LABOR FORCE LABOR FORCES LABOR SUPPLY LABOUR LONGEVITY ADJUSTMENT LOW FERTILITY LOWER FERTILITY MARKET EQUILIBRIUM NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST OPTIMIZATION OVERLAPPING GENERATIONS MODEL PAYROLL TAX PENSION PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION SYSTEM PENSION SYSTEMS POLICY FRAMEWORK POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY RESPONSE POLITICAL ECONOMY POPULATION DYNAMICS POPULATION GROWTH POPULATION GROWTH RATE PRODUCTIVITY PROGRESS RATE OF GROWTH REAL WAGES REPLACEMENT RATE RESPECT RETIREES RETIREMENT RETIREMENT AGE RETIREMENT PERIOD RETIREMENT PERIODS RETIREMENT POLICY SOCIAL SECURITY SOCIAL SECURITY REFORM TAX RATE TAXATION UTILITY FUNCTION WAGE RATE WEALTH WORKER WORKERS WORKING HOURS Using a stochastic general equilibrium model with overlapping generations, this paper studies a policy rule for the retirement age aiming at offsetting the effects on the supply of labor following fertility changes. The authors find that the retirement age should increase more than proportionally to the direct fall in labor supply caused by a fall in fertility. The robustness of this result is checked against alternative model specifications and parameter values. The efficacy of the policy rule depends crucially on the link between the preference for leisure and the response of the intensive margin of labor supply to changes in the statutory retirement age. The model has subsequently been calibrated for Brazil by Jorgensen (2010), in the context of the Brazil Aging Study. 2012-03-19T18:41:13Z 2012-03-19T18:41:13Z 2010-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100727134920 http://hdl.handle.net/10986/3867 English Policy Research working paper ; no. WPS 5382 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean The World Region The World Region South America America |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGGREGATE INCOME ALLOCATION OF RESOURCES BABIES BABY BABY BOOM BUSINESS CYCLE CAPITAL INVESTMENT CHANGES IN FERTILITY CONSUMPTION INCREASES CONTRIBUTION RATE DEBT DECLINE IN FERTILITY DECLINES IN FERTILITY DEMOGRAPHIC TRENDS DEPENDENCY RATIO DEPENDENCY RATIOS DISCOUNT RATE DOWNWARD PRESSURE EARLY RETIREMENT ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC THEORY ELASTICITY ELASTICITY OF SUBSTITUTION ELDERLY ENDOGENOUS VARIABLES EXOGENOUS SHOCK EXOGENOUS VARIABLE FERTILITY FERTILITY DECLINE FERTILITY RATE FERTILITY RATES FUTURE RESEARCH GENERAL EQUILIBRIUM GROSS RETURN GROWTH RATE HUMAN CAPITAL IMPERFECT COMPETITION INDEXATION INNOVATIONS LABOR ECONOMICS LABOR FORCE LABOR FORCES LABOR SUPPLY LABOUR LONGEVITY ADJUSTMENT LOW FERTILITY LOWER FERTILITY MARKET EQUILIBRIUM NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST OPTIMIZATION OVERLAPPING GENERATIONS MODEL PAYROLL TAX PENSION PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION SYSTEM PENSION SYSTEMS POLICY FRAMEWORK POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY RESPONSE POLITICAL ECONOMY POPULATION DYNAMICS POPULATION GROWTH POPULATION GROWTH RATE PRODUCTIVITY PROGRESS RATE OF GROWTH REAL WAGES REPLACEMENT RATE RESPECT RETIREES RETIREMENT RETIREMENT AGE RETIREMENT PERIOD RETIREMENT PERIODS RETIREMENT POLICY SOCIAL SECURITY SOCIAL SECURITY REFORM TAX RATE TAXATION UTILITY FUNCTION WAGE RATE WEALTH WORKER WORKERS WORKING HOURS |
| spellingShingle |
AGGREGATE INCOME ALLOCATION OF RESOURCES BABIES BABY BABY BOOM BUSINESS CYCLE CAPITAL INVESTMENT CHANGES IN FERTILITY CONSUMPTION INCREASES CONTRIBUTION RATE DEBT DECLINE IN FERTILITY DECLINES IN FERTILITY DEMOGRAPHIC TRENDS DEPENDENCY RATIO DEPENDENCY RATIOS DISCOUNT RATE DOWNWARD PRESSURE EARLY RETIREMENT ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC THEORY ELASTICITY ELASTICITY OF SUBSTITUTION ELDERLY ENDOGENOUS VARIABLES EXOGENOUS SHOCK EXOGENOUS VARIABLE FERTILITY FERTILITY DECLINE FERTILITY RATE FERTILITY RATES FUTURE RESEARCH GENERAL EQUILIBRIUM GROSS RETURN GROWTH RATE HUMAN CAPITAL IMPERFECT COMPETITION INDEXATION INNOVATIONS LABOR ECONOMICS LABOR FORCE LABOR FORCES LABOR SUPPLY LABOUR LONGEVITY ADJUSTMENT LOW FERTILITY LOWER FERTILITY MARKET EQUILIBRIUM NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST OPTIMIZATION OVERLAPPING GENERATIONS MODEL PAYROLL TAX PENSION PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION SYSTEM PENSION SYSTEMS POLICY FRAMEWORK POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLICY RESPONSE POLITICAL ECONOMY POPULATION DYNAMICS POPULATION GROWTH POPULATION GROWTH RATE PRODUCTIVITY PROGRESS RATE OF GROWTH REAL WAGES REPLACEMENT RATE RESPECT RETIREES RETIREMENT RETIREMENT AGE RETIREMENT PERIOD RETIREMENT PERIODS RETIREMENT POLICY SOCIAL SECURITY SOCIAL SECURITY REFORM TAX RATE TAXATION UTILITY FUNCTION WAGE RATE WEALTH WORKER WORKERS WORKING HOURS Jorgensen, Ole Hagen Jensen, Svend E. Hougaard Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean The World Region The World Region South America America |
| relation |
Policy Research working paper ; no. WPS 5382 |
| description |
Using a stochastic general equilibrium
model with overlapping generations, this paper studies a
policy rule for the retirement age aiming at offsetting the
effects on the supply of labor following fertility changes.
The authors find that the retirement age should increase
more than proportionally to the direct fall in labor supply
caused by a fall in fertility. The robustness of this result
is checked against alternative model specifications and
parameter values. The efficacy of the policy rule depends
crucially on the link between the preference for leisure and
the response of the intensive margin of labor supply to
changes in the statutory retirement age. The model has
subsequently been calibrated for Brazil by Jorgensen (2010),
in the context of the Brazil Aging Study. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Jorgensen, Ole Hagen Jensen, Svend E. Hougaard |
| author_facet |
Jorgensen, Ole Hagen Jensen, Svend E. Hougaard |
| author_sort |
Jorgensen, Ole Hagen |
| title |
Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility |
| title_short |
Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility |
| title_full |
Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility |
| title_fullStr |
Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility |
| title_full_unstemmed |
Labor Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility |
| title_sort |
labor supply and retirement policy in an overlapping generations model with stochastic fertility |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100727134920 http://hdl.handle.net/10986/3867 |
| _version_ |
1764388747494817792 |