The effects of longevity and distortions on education and retirement
Autor(a) principal: | |
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Data de Publicação: | 2005 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/521 |
Resumo: | This article studies the impact of longevity and taxation on life-cycle decisions and long-run income. Individuals allocate optimally their total lifetime between education, working and retirement. They also decide at each moment how much to save or consume out of their income, and after entering the labor market how to divide their time between labor and leisure. The model incorporates experience-earnings profiles and the return-to-education function that follows evidence from the labor literature. In this setup, increases in longevity raises the investment in education - time in school - and retirement. The model is calibrated to the U.S. and is able to reproduce observed schooling levels and the increase in retirement, as the evidence shows. Simulations show that a country equal to the U.S. but with 20% smaller longevity will be 25% poorer. In this economy, labor taxes have a strong impact on the per capita income, as it decreases labor effort, time at school and retirement age, in addition to the general equilibrium impact on physical capital. We conclude that life-cycle effects are relevant in analyzing the aggregate outcome of taxation. |
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Ferreira, Pedro CavalcantiPessôa, Samuel de AbreuEscolas::EPGEFGV2008-05-13T15:25:46Z2008-05-13T15:25:46Z2005-06-020104-8910http://hdl.handle.net/10438/521This article studies the impact of longevity and taxation on life-cycle decisions and long-run income. Individuals allocate optimally their total lifetime between education, working and retirement. They also decide at each moment how much to save or consume out of their income, and after entering the labor market how to divide their time between labor and leisure. The model incorporates experience-earnings profiles and the return-to-education function that follows evidence from the labor literature. In this setup, increases in longevity raises the investment in education - time in school - and retirement. The model is calibrated to the U.S. and is able to reproduce observed schooling levels and the increase in retirement, as the evidence shows. Simulations show that a country equal to the U.S. but with 20% smaller longevity will be 25% poorer. In this economy, labor taxes have a strong impact on the per capita income, as it decreases labor effort, time at school and retirement age, in addition to the general equilibrium impact on physical capital. We conclude that life-cycle effects are relevant in analyzing the aggregate outcome of taxation.engEscola de Pós-Graduação em Economia da FGVEnsaios Econômicos;590The effects of longevity and distortions on education and retirementinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleEconomiaEconomiaEducação e nível de rendaRenda - DistribuiçãoPolítica comercialreponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessORIGINAL1854.pdfapplication/pdf379941https://repositorio.fgv.br/bitstreams/bdbb44a8-60e7-4e42-81a2-01ada7c8cc49/download241be839c5e3a7a78e7023bc8a26ceecMD51TEXT1854.pdf.txt1854.pdf.txtExtracted texttext/plain69221https://repositorio.fgv.br/bitstreams/8f38647f-1195-4508-853f-3d6a92ef2ea4/download3c77e20afdc5f7858209221727d7645eMD56THUMBNAIL1854.pdf.jpg1854.pdf.jpgGenerated Thumbnailimage/jpeg3286https://repositorio.fgv.br/bitstreams/ee6cdb18-2d7d-428a-b86c-b5f109b11d37/download181b97d715ce0640fb4dc94db522cb48MD5710438/5212023-11-08 11:24:29.28open.accessoai:repositorio.fgv.br:10438/521https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-08T11:24:29Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
The effects of longevity and distortions on education and retirement |
title |
The effects of longevity and distortions on education and retirement |
spellingShingle |
The effects of longevity and distortions on education and retirement Ferreira, Pedro Cavalcanti Economia Economia Educação e nível de renda Renda - Distribuição Política comercial |
title_short |
The effects of longevity and distortions on education and retirement |
title_full |
The effects of longevity and distortions on education and retirement |
title_fullStr |
The effects of longevity and distortions on education and retirement |
title_full_unstemmed |
The effects of longevity and distortions on education and retirement |
title_sort |
The effects of longevity and distortions on education and retirement |
author |
Ferreira, Pedro Cavalcanti |
author_facet |
Ferreira, Pedro Cavalcanti Pessôa, Samuel de Abreu |
author_role |
author |
author2 |
Pessôa, Samuel de Abreu |
author2_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Ferreira, Pedro Cavalcanti Pessôa, Samuel de Abreu |
dc.subject.area.por.fl_str_mv |
Economia |
topic |
Economia Economia Educação e nível de renda Renda - Distribuição Política comercial |
dc.subject.bibliodata.por.fl_str_mv |
Economia Educação e nível de renda Renda - Distribuição Política comercial |
description |
This article studies the impact of longevity and taxation on life-cycle decisions and long-run income. Individuals allocate optimally their total lifetime between education, working and retirement. They also decide at each moment how much to save or consume out of their income, and after entering the labor market how to divide their time between labor and leisure. The model incorporates experience-earnings profiles and the return-to-education function that follows evidence from the labor literature. In this setup, increases in longevity raises the investment in education - time in school - and retirement. The model is calibrated to the U.S. and is able to reproduce observed schooling levels and the increase in retirement, as the evidence shows. Simulations show that a country equal to the U.S. but with 20% smaller longevity will be 25% poorer. In this economy, labor taxes have a strong impact on the per capita income, as it decreases labor effort, time at school and retirement age, in addition to the general equilibrium impact on physical capital. We conclude that life-cycle effects are relevant in analyzing the aggregate outcome of taxation. |
publishDate |
2005 |
dc.date.issued.fl_str_mv |
2005-06-02 |
dc.date.accessioned.fl_str_mv |
2008-05-13T15:25:46Z |
dc.date.available.fl_str_mv |
2008-05-13T15:25:46Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
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info:eu-repo/semantics/article |
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article |
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publishedVersion |
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http://hdl.handle.net/10438/521 |
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0104-8910 |
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0104-8910 |
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http://hdl.handle.net/10438/521 |
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eng |
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eng |
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Ensaios Econômicos;590 |
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info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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