Seminar: Ole Jørgensen, University of Southern Denmark.

Title: Labour Supply and Retirement Policy in an Overlapping Generations Model with Stochastic Fertility.

Abstract:

Due to low fertility and shrinking labour forces industrialized countries currently struggle with policies to expand labour supply. This paper analyses the macroeco-nomic implications of low fertility and .nds that the intensity of labour supply - and not only the size of a labour force - is likely to fall which will amplify the negative fertility-effect on labour supply. We suggest and derive a policy rule for the statutory retirement age that has the potential to offset these dynamics, and find that an optimal increase in the statutory retirement age should be more than proportional to the fertility decline because households.lifetime leisure is likely to fall.