Increases in the proportion of the working age population can yield a quot;demographic dividendquot; that enhances the rate of economic growth. We estimate the parameters of an economic growth model with a cross section of countries over the period 1960 to 1980 and investigate whether the...

We explore the proposition that expected longevity affects retirement decisions and accumulated wealth using micro data drawn from the Health and Retirement Study for the United States. We use data on a person's subjective probability of survival to age 75 as a proxy for their prospective...

In theory, improvements in healthy life expectancy should generate increases in the average age of retirement, with little effect on savings rates. In many countries, however, retirement incentives in social security programs prevent retirement ages from keeping pace with changes in life...

We develop a life-cycle model of optimal retirement and savings behavior under complete markets. Our model explains the long-run decline in the age of retirement as an income level effect, with higher wage growth and lower interest rates tending to increase the retirement age. We show that...

Between 2000 and 2050, the share of the population aged 60 and over is projected to increase in every country in the world. Although labor force participation rates are projected to decline from 2000 to 2040 in most countries, due mainly to changes in their age distributions, labor force-...

Health is a direct source of human welfare and also an instrument for raising income levels. The authors discuss a number of mechanisms through which health can affect income, focusing on worker productivity, children's education, savings and investment, and demographic structure. As well as the...

Enrollment rates for higher education in Sub-Saharan Africa are by far the lowest in the world at 6%. Yet because of conventional beliefs that tertiary education is less important for poverty reduction, the international development community has encouraged African governments' relative neglect...

In a recent paper, Acemoglu and Johnson (2007) argue that the large increases in population health witnessed in the 20th century may have lowered income levels. We argue that this result depends crucially on their assumption that initial health and income do not affect subsequent economic...

We analyze the effect of fertility on income per capita with a particular focus on the experience of Europe. For European countries with below-replacement fertility, the cost of continued low fertility will only be observed in the long run. We show that in the short run, a fall in the fertility...

We construct a life-cycle model in which retirement occurs at the end of life as a result of declining health. We show that improvements in life expectancy, coupled with a delay in the onset of disability, increases both the optimal consumption level and the proportion of life spent in leisure....