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Subsidy Policy and Elderly Labor

Author

Listed:
  • Yusuke Miyake

    (Shigakukan University)

  • Masaya Yasuoka

    (Kwansei Gakuin University)

Abstract

In economically developed countries, aging societies with fewer children are progressing. Increased longevity has necessitated postponement of the working retirement age. Our paper presents an examination of how subsidies for an elderly labor supply and a decrease in the population growth rate affect the elderly labor supply and intergenerational wage inequality between younger people and elderly people. Our paper presents the derivation that this subsidy raises the elderly labor supply. Based on the contribution rate for pension and the elasticity of substitution between young labor and elderly labor, the effects of a decrease in population growth on the elderly labor supply are ascertained. Moreover, the study described in this paper derives the positive subsidy rate for elderly labor to maximize social welfare.

Suggested Citation

  • Yusuke Miyake & Masaya Yasuoka, 2018. "Subsidy Policy and Elderly Labor," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(2), pages 331-347, July.
    • Handle: RePEc:spr:italej:v:4:y:2018:i:2:d:10.1007_s40797-017-0067-x
    DOI: 10.1007/s40797-017-0067-x
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    Cited by:

    1. Masaya Yasuoka, 2019. "Elderly Labor and Precautionary Saving," Discussion Paper Series 193, School of Economics, Kwansei Gakuin University.

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    More about this item

    Keywords

    Aging society; Elderly labor; Subsidy;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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