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The relationship between mandatory retirement and patterns of human capital accumulation

Author

Listed:
  • Masato Masuyama

    (Tokyo Institute of Technology)

  • Ryoji Ohdoi

    (Kwansei Gakuin University)

Abstract

This study examines the relationship between mandatory retirement, patterns of human capital accumulation, and economic growth. A key feature of the model is that the agents of the working generation not only educate their children, but also have the opportunity to educate themselves for their labor supply in old age. We show that they educate themselves if a mandatory retirement age is sufficiently high. However, the extension of the retirement age in this case is neutral for the growth rate.

Suggested Citation

  • Masato Masuyama & Ryoji Ohdoi, 2022. "The relationship between mandatory retirement and patterns of human capital accumulation," Economics Bulletin, AccessEcon, vol. 42(2), pages 1192-1202.
    • Handle: RePEc:ebl:ecbull:eb-21-00796
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I2-P101.pdf
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    References listed on IDEAS

    as
    1. Hung‐Ju Chen, 2018. "Fertility, retirement age, and pay‐as‐you‐go pensions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(6), pages 944-961, December.
    2. Luciano Fanti & Luca Gori, 2012. "Fertility and PAYG pensions in the overlapping generations model," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 955-961, July.
    3. Hung-ju Chen & Koichi Miyazaki, 2020. "Labor productivity, labor supply of the old, and economic growth," Economics Bulletin, AccessEcon, vol. 40(1), pages 277-285.
    4. Lars Kunze, 2014. "Mandatory retirement and economic growth: An inverted U-shaped relationship," Economics Bulletin, AccessEcon, vol. 34(2), pages 885-891.
    5. Zhang, Jie & Zhang, Junsen, 2009. "Longevity, Retirement, And Capital Accumulation In A Recursive Model With An Application To Mandatory Retirement," Macroeconomic Dynamics, Cambridge University Press, vol. 13(3), pages 327-348, June.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Mandatory retirement; Human capital; Uzawa–Lucas endogenous growth;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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