Life expectancy and endogenous growth

We consider an overlapping generations model with uncertain lifetime and endogenous growth. Individuals have to choose the length of time devoted to schooling before starting to work. We show that it depends positively on life expectancy. Moreover, the effect of life expectancy on growth is positive for economies with a relatively low life expectancy, but could be negative in more advanced economies. The positive effect of a longer life on growth could indeed be offset by an increase in the average age of the workers. Dynamics are characterised by a delay differential equation and human capital converges with oscillations to a balanced growth path. (C) 1999 Elsevier Science S.A. All rights reserved. JEL classification: O41; J10