This study focuses on the utilization of the senior workforce as a key factor in the policy task to promote sustainable economic growth in response to population aging. Accordingly, a review was conducted of the need for and the economic consequences of using older workers and suggestions were presented for a comprehensive policy direction to expand elderly labor force participation as well as supplemental policy options for the senior population who are unable to participate in the market.

Chapter 2 examines the impact of population aging on long-term economic growth through growth accounting and emphasizes the use of older workers as a fundamental direction for aging policies. Chapter 3 shows that the average additional work capacity of Korean elderly men is a mere 2-4%p in terms of the current health status, but the additional work capacity of elderly male college graduates, whose numbers are expected to increase, stands relatively high. Chapter 4 examines the possibility of future labor supply changes for the elderly and its macroeconomic implications. Based on the results, we explore institutional improvements to increase the participation of seniors in the labor market.

In order for the senior population to participate in the labor market, comprehensive and multifaceted policy efforts are needed in terms of labor supply and demand. For labor supply, an institutional environment should be established to maintain the labor productivity of workers including the elderly, and to raise economic incentives to reduce distortions in the decision-making of the elderly. And for labor demand, it is important that uncertainties in labor productivity are mitigated to reduce distortions in employers’ decision to hire older workers and to establish a labor market environment that allows flexible employment and wage setting according to labor productivity. Additionally, policy efforts should be made to increase demand for the elderly by adjusting the industrial and technological structure in response to population aging.

Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 Macroeconomic Implications of Aging and Policy Directions
　Section 1 Introduction
　Section 2 Recent Demographic Changes in Korea: Aging Trends
　Section 3 Macroeconomic Impact of Population Aging
　Section 4 Long-Term Growth Projections and Scenario Analysis Considering Demographic Changes
　Section 5 Policy Response: Utilizing the Senior Workforce
　Section 6 Policy Implications and Conclusion
　References
　Appendix

Chapter 3 Elderpy Health Status and Retirement Age Adjustment research
　Section 1 Introduction
　Section 2 Economic Activity Trends of Elderly Men
　Section 3 Improvements in Elderly Male Health and Health Inequality
　Section 4 Estimation of Additional Work Capacity
　Section 5 Summary and Policy Implications
　References

Chapter 4 Potential Changes in Senior Labor Supply and Policy Implications
　Section 1 Introduction
　Section 2 Macroeconomic Effects of Increased Life Expectancy
　Section 3 Prospects for Changes in Senior Labor Supply
　Section 4 Macroeconomic Effects of Changes in Senior Labor Supply
　Section 5 Policy Responses to Promote Senior Workforce Participation
　Section 6 Conclusion and Policy Implications
　References

ABSTRACT