Abstract

Along with the decline of total fertility rate and natural growth rate of population as well as raised life expectancy, population aging is more an more serious and is becoming a crucial issue which can not to be neglected. This paper proposes two augmented Solow models: one is to distinguish between population growth and labor growth, and introduce the retirement rate into the model; One is to add life expectancy, retirement age and human capital into the model. Both extended Solow models find that a decrease in the retirement rate or an increase of retirement age is conducive to the increase of output per capita, mainly due to the increase in the ratio of labor population to total population. The augmented Solow model with human capital finds that the improvement of human capital compensates for part of the negative impact of population aging on economic growth by increasing labor productivity. The postponement of retirement age not only increases the number of labor supply, but also improves labor productivity.