• Title/Summary/Keyword: 저축

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Incentive to Save and the Effects of Extended Mandatory Retirement Age (근로자 저축유인과 정년연장의 경제적 효과)

  • Kim, Dae Il
    • Journal of Labour Economics
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    • v.33 no.3
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    • pp.1-23
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    • 2010

  • Extension of mandatory retirement age (MRA) differs from other labor supply increases in that it induces a change in the incentive to save for retirement. A simple general equilibrium model indicates that extension of MRA can lead to a decrease in life-time income and social welfare as it excessively discourages domestic savings and thus capital accumulation. However, in an open economy where capital inflow allows capital input in production to remain constant despite lower domestic capital stock, extension of MRA likely increases worker welfare. In such case, extension of MRA can contribute to expansion of hiring demands through lowering wages or mitigating upward pressures on wages.

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