The policy of the retirement age extension is expected to apply to only a few select industries and occupations—those requiring skilled workers. The most likely candidates are the professional/scientific/technical services, business support services, public administration, education services, and health and social work. The analysis indicates that increases in labor supply from older workers would lead to falls in wages and increases in total employment overall. It is unlikely to reduce the poverty rate or mitigate inequality in the short run. This is mainly because the benefits of a higher retirement age would be concentrated in workers already at the top of the earned income distribution.
Ⅰ. Introduction 1 1. Background and Objective 3 2. Research Methodology 6 Ⅱ. Literature Review 9 1. Literature Abroad 11 2. Literature on Korea 14 Ⅲ. Model and Database 23 1. Social Accounting Matrix (SAM) 25 2. Database of the Model 30 3. CGE Model and Scenarios 33 Ⅳ. Empirical Evidence 39 1. Macro-Level Effects 41 2. Micro-Level Effects 46 Ⅴ. Conclusion and Implications 51 1. Summary of Findings and Implications 53 2. Limitations of This Study 55 Bibliography 57