Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy
Using a stochastic general equilibrium model with overlapping generations, this paper studies (i) the effects on both extensive and intensive labor supply responses to changes in fertility rates, and (ii) the potential of a retirement reform to mit...
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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_20101109093239 http://hdl.handle.net/10986/3952 |
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okr-10986-39522021-04-23T14:02:14Z Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy Jensen, Svend E. Hougaard Jorgensen, Ole Hagen AGE COMPOSITION AGGREGATE INCOME ALLOCATION OF RESOURCES BABIES BABY BABY BOOM BUSINESS CYCLE CAPITAL INVESTMENT CHANGES IN FERTILITY CONSUMPTION INCREASES CONTRIBUTION RATE DEBT DECLINE IN FERTILITY DEMOGRAPHIC TRENDS DEPENDENCY RATIOS DISCOUNT RATE DOWNWARD PRESSURE EARLY RETIREMENT ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC THEORY ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION ELDERLY ENDOGENOUS VARIABLES EXOGENOUS VARIABLE FERTILITY FERTILITY DECLINE FERTILITY RATE FERTILITY RATES FINANCIAL MARKETS FISCAL POLICY FUTURE RESEARCH GENERAL EQUILIBRIUM GLOBAL POPULATION GROSS RETURN GROWTH RATE HUMAN CAPITAL IMPERFECT COMPETITION INCOME INDEXATION INNOVATIONS INTERNATIONAL MOBILITY LABOR ECONOMICS LABOR MARKET LABOR SUPPLY LABOUR LABOUR FORCE LABOUR FORCES LABOUR MARKET LABOUR SUPPLY LONGEVITY ADJUSTMENT LOW FERTILITY LOWER FERTILITY MARKET EQUILIBRIUM MONETARY POLICY NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST OPTIMIZATION OVERLAPPING GENERATIONS MODEL PAYROLL TAX PENSION PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION REFORM PENSION SYSTEM PENSION SYSTEMS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER 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 RETIREMENT SAVINGS SOCIAL SECURITY SOCIAL SECURITY REFORM SURVIVAL PROBABILITIES TAX RATE TAXATION UTILITY FUNCTION WAGE RATE WAGES WEALTH WORKER WORKERS WORKING HOURS Using a stochastic general equilibrium model with overlapping generations, this paper studies (i) the effects on both extensive and intensive labor supply responses to changes in fertility rates, and (ii) the potential of a retirement reform to mitigate the effects of fertility changes on labor supply. In order to neutralize the effects on effective labor supply of a fertility decline, a retirement reform, designed to increase labor supply at the extensive margin, is found to simultaneously reduce labor supply at the intensive margin. This backlash to retirement reform requires the statutory retirement age to increase more than proportionally to fertility changes in order to compensate for endogenous responses of the intensity of labor supply. The robustness of this result is checked against alternative model specifications and calibrations relevant to an economic region such as Europe. 2012-03-19T18:42:44Z 2012-03-19T18:42:44Z 2010-11-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101109093239 http://hdl.handle.net/10986/3952 English Policy Research working paper ; no. WPS 5470 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGE COMPOSITION AGGREGATE INCOME ALLOCATION OF RESOURCES BABIES BABY BABY BOOM BUSINESS CYCLE CAPITAL INVESTMENT CHANGES IN FERTILITY CONSUMPTION INCREASES CONTRIBUTION RATE DEBT DECLINE IN FERTILITY DEMOGRAPHIC TRENDS DEPENDENCY RATIOS DISCOUNT RATE DOWNWARD PRESSURE EARLY RETIREMENT ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC THEORY ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION ELDERLY ENDOGENOUS VARIABLES EXOGENOUS VARIABLE FERTILITY FERTILITY DECLINE FERTILITY RATE FERTILITY RATES FINANCIAL MARKETS FISCAL POLICY FUTURE RESEARCH GENERAL EQUILIBRIUM GLOBAL POPULATION GROSS RETURN GROWTH RATE HUMAN CAPITAL IMPERFECT COMPETITION INCOME INDEXATION INNOVATIONS INTERNATIONAL MOBILITY LABOR ECONOMICS LABOR MARKET LABOR SUPPLY LABOUR LABOUR FORCE LABOUR FORCES LABOUR MARKET LABOUR SUPPLY LONGEVITY ADJUSTMENT LOW FERTILITY LOWER FERTILITY MARKET EQUILIBRIUM MONETARY POLICY NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST OPTIMIZATION OVERLAPPING GENERATIONS MODEL PAYROLL TAX PENSION PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION REFORM PENSION SYSTEM PENSION SYSTEMS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER 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 RETIREMENT SAVINGS SOCIAL SECURITY SOCIAL SECURITY REFORM SURVIVAL PROBABILITIES TAX RATE TAXATION UTILITY FUNCTION WAGE RATE WAGES WEALTH WORKER WORKERS WORKING HOURS |
| spellingShingle |
AGE COMPOSITION AGGREGATE INCOME ALLOCATION OF RESOURCES BABIES BABY BABY BOOM BUSINESS CYCLE CAPITAL INVESTMENT CHANGES IN FERTILITY CONSUMPTION INCREASES CONTRIBUTION RATE DEBT DECLINE IN FERTILITY DEMOGRAPHIC TRENDS DEPENDENCY RATIOS DISCOUNT RATE DOWNWARD PRESSURE EARLY RETIREMENT ECONOMIC DECISIONS ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC THEORY ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION ELDERLY ENDOGENOUS VARIABLES EXOGENOUS VARIABLE FERTILITY FERTILITY DECLINE FERTILITY RATE FERTILITY RATES FINANCIAL MARKETS FISCAL POLICY FUTURE RESEARCH GENERAL EQUILIBRIUM GLOBAL POPULATION GROSS RETURN GROWTH RATE HUMAN CAPITAL IMPERFECT COMPETITION INCOME INDEXATION INNOVATIONS INTERNATIONAL MOBILITY LABOR ECONOMICS LABOR MARKET LABOR SUPPLY LABOUR LABOUR FORCE LABOUR FORCES LABOUR MARKET LABOUR SUPPLY LONGEVITY ADJUSTMENT LOW FERTILITY LOWER FERTILITY MARKET EQUILIBRIUM MONETARY POLICY NUMBER OF CHILDREN NUMBER OF WORKERS OPPORTUNITY COST OPTIMIZATION OVERLAPPING GENERATIONS MODEL PAYROLL TAX PENSION PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION REFORM PENSION SYSTEM PENSION SYSTEMS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER 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 RETIREMENT SAVINGS SOCIAL SECURITY SOCIAL SECURITY REFORM SURVIVAL PROBABILITIES TAX RATE TAXATION UTILITY FUNCTION WAGE RATE WAGES WEALTH WORKER WORKERS WORKING HOURS Jensen, Svend E. Hougaard Jorgensen, Ole Hagen Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5470 |
| description |
Using a stochastic general equilibrium
model with overlapping generations, this paper studies (i)
the effects on both extensive and intensive labor supply
responses to changes in fertility rates, and (ii) the
potential of a retirement reform to mitigate the effects of
fertility changes on labor supply. In order to neutralize
the effects on effective labor supply of a fertility
decline, a retirement reform, designed to increase labor
supply at the extensive margin, is found to simultaneously
reduce labor supply at the intensive margin. This backlash
to retirement reform requires the statutory retirement age
to increase more than proportionally to fertility changes in
order to compensate for endogenous responses of the
intensity of labor supply. The robustness of this result is
checked against alternative model specifications and
calibrations relevant to an economic region such as Europe. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Jensen, Svend E. Hougaard Jorgensen, Ole Hagen |
| author_facet |
Jensen, Svend E. Hougaard Jorgensen, Ole Hagen |
| author_sort |
Jensen, Svend E. Hougaard |
| title |
Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy |
| title_short |
Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy |
| title_full |
Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy |
| title_fullStr |
Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy |
| title_full_unstemmed |
Reform and Backlash to Reform : Economic Effects of Ageing and Retirement Policy |
| title_sort |
reform and backlash to reform : economic effects of ageing and retirement policy |
| 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_20101109093239 http://hdl.handle.net/10986/3952 |
| _version_ |
1764389186547220480 |