author : Kwack, Sung Yeung , Lee, Young Sun , Choi, Heeseon

-contents-

Part I. Introduction = 1
1. Issues = 3
2. Demographic Trend in Korea = 4
3. Summary of the Study = 9
References = 12

Part II. Age Profiles of Wage Rate and Productivity = 15
1. Introduction = 17
2. The Mincerian Wage Earnings Specification = 18
3. Productivity and Age = 33
4. Summary and Conclusion = 49
References = 52

Part III. A Neo-Classical Analysis of the Korea`s Growth Behavior = 57
1. Introduction = 59
2. Economic Growth Models = 60
3. Econometric Specification = 70
4. Data Sources = 74
5. Empirical Results = 78
6. Conclusions = 95
References = 99
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Part1. Introduction
1. Issues
All of the major industrial countries have experienced significant aging of their population and will experience further aging of their population over the next several decades. Korea is not an exception. The proportion of people aged 65 and over was 3.4 percent in 1960 and increased to 8.3 percent in 2003. It is projected to rise to 34.4 percent in 2050. At the same time, the proportion of people aged 14 and below was 42.8 percent in 1960, decreased to 20.3 percent in 2003 and is projected to decline further to 10.5 percent in 2050. Korea is becoming a member of the class of a ‘rapidly aging population nations’.
The aging of a country’s population leads to a decline in the work force and a change in its age composition. It raises microeconomic issues related to the productivity of workers, health care, and other services affecting the welfare of the elderly. It also raises macroeconomic issues affecting saving rates, government health care and finance, and growth...