THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL

Authors

  • André Berardo Coelho Universidade Federal de Pernambuco
  • Nelson Leitão Paes Universidade Federal de Pernambuco Universidade Federal do Mato Grosso http://orcid.org/0000-0001-6246-4503

DOI:

https://doi.org/10.25070/rea.v16i1.546

Abstract

This paper uses the Zon and Muysken (2001) model to investigate the effect of increasing the retirement age on health care production, human capital accumulation, and economic growth. All three sectors are interrelated, since the overall level of health affects both workers and the accumulation of human capital, while a higher level of human capital is related to better quality of health. And, finally, health and human capital affect the output of the economy. From the economic growth point of view the results seem to be positive. Increasing labor availability raises productivity in the health sector, which ultimately improves labor productivity, resulting in increased capital accumulation and economic growth. On the other hand, it is estimated a reduction in the propensity to consume and a smaller portion of the labor force allocated in the health sector.

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Author Biography

Nelson Leitão Paes, Universidade Federal de Pernambuco Universidade Federal do Mato Grosso

Professor da Pós-graduação em economia da UFPE e da UFMT

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Published

2018-05-07

How to Cite

Coelho, A. B., & Paes, N. L. (2018). THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL. Revista De Economia E Agronegócio, 16(1), 29–41. https://doi.org/10.25070/rea.v16i1.546

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