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 health 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 age from keeping pace with changes in life...

We develop a life-cycle model of optimal retirement and savings behavior under complete markets where retirement is caused by worsening health in old age. Our model explains the long-run decline in the age of retirement as an income level effect. We show that improvements in health and longevity...

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....

While childhood vaccination programs, such as WHO’s Expanded Program on Immunization, have had a dramatic impact on child morbidity and mortality worldwide, lack of coverage with several existing vaccines is responsible for large numbers of child deaths each year, mostly in developing...

In 1994 the World Bank called East Asia's strong economic growth performance a "miracle". Trade openness, high savings rates, human capital accumulation, and macroeconomic policy only explained part of this growth performance; the remainder was left unexplained. Research in the ensuing years has...

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 high cost of continued low fertility will only be observed in the long run. We show that in the short run, a fall in the...

Debates over the economic effects of demographic change have been raging for over 200 years. Since Thomas Malthus hypothesised in 1798 that rapid population growth would stretch the earth’s resources beyond the breaking point, leading to mass starvation and death, demographers and economists...

There is strong evidence that, in addition to individual and household characteristics, social interactions are important in determining fertility rates. Social interactions can lead to a multiplier effect where an individual’s ideas, and fertility choice, can affect the fertility decisions of...

We analyze panel data for 40 countries over the period 1970-2000 to examine the effect of social security reforms on the labor supply of older men. The data show a trend towards earlier retirement that can be explained by rising income levels. We find that the average retirement age rises...