Economic Retirement Age and Lifelong Learning - A Theoretical Model with Heterogeneous Labor, Biased Technical Change and International Sourcing

46 Pages Posted: 1 Feb 2017

See all articles by Thomas Gries

Thomas Gries

University of Paderborn

Stefan Jungblut

University of Paderborn

Tim Krieger

University of Freiburg - Department of Economics

Henning Meyer

University of Paderborn

Date Written: January 10, 2017

Abstract

The employability of an aging population in a world of continuous and biased technical change is top of the political agenda. Due to endogenous human capital depreciation the effective retirement age is often below statutory retirement age resulting in permanent non-employability of older workers. We analyze this phenomenon in a putty-putty human capital vintage model and focus on education and the speed of human capital depreciation. Introducing a two-stage education system with initial schooling and lifelong learning, not even lifelong learning turns out to be capable of aligning economic and statutory retirement. However, well designed education programs will keep more workers in highly productive activities at the end of their working life, and hence will substitute for simple social transfers, or for an early switch towards very low paid jobs.

Keywords: lifelong learning, retirement, employability, education system, heterogeneous labor, biased technical change

JEL Classification: J260, O330, J640

Suggested Citation

Gries, Thomas and Jungblut, Stefan and Krieger, Tim and Meyer, Henning, Economic Retirement Age and Lifelong Learning - A Theoretical Model with Heterogeneous Labor, Biased Technical Change and International Sourcing (January 10, 2017). CESifo Working Paper Series No. 6257, Available at SSRN: https://ssrn.com/abstract=2909637

Thomas Gries (Contact Author)

University of Paderborn ( email )

Warburger St. 100
Paderborn, D-33098
Germany

Stefan Jungblut

University of Paderborn ( email )

Warburger St. 100
Paderborn, D-33098
Germany

Tim Krieger

University of Freiburg - Department of Economics ( email )

University of Freiburg
Wilhelmstr. 1b
Freiburg, D-79085
Germany

HOME PAGE: http://www.wguth.uni-freiburg.de

Henning Meyer

University of Paderborn ( email )

Warburger Str. 100
Paderborn, D-33098
Germany

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