Theoretical Economics Letters

Volume 8, Issue 15 (December 2018)

ISSN Print: 2162-2078   ISSN Online: 2162-2086

Google-based Impact Factor: 1.02  Citations  h5-index & Ranking

Social Security, Retirement and Economic Growth

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DOI: 10.4236/tel.2018.815214    527 Downloads   842 Views  Citations
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ABSTRACT

Population aging alters decisions of retirement and intergenerational transfers simultaneously. With the consideration of both decisions, this paper investigates the economic impacts of population aging in an Overlapping-Generation (OLG) model under social security coverage. Results show that the economy grows slower with voluntarily increased elderly labor supply than otherwise. Ignoring the interactions between these decisions may lead to a serious mis-estimation. Results also show that mandatory postponing retirement creates disincentive to saving and hinders the economy. To prevent the economy from slowing down and fertility from falling, mandatory postponing retirement must be accompanied by a lower replacement ratio.

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Hua, K. (2018) Social Security, Retirement and Economic Growth. Theoretical Economics Letters, 8, 3481-3491. doi: 10.4236/tel.2018.815214.

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