Can higher life expectancy induce more schooling and earlier retirement?

In this paper, we show that it may be optimal for individuals to educate more and retire earlier when life expectancy increases. This result reconciles the findings of Hazan (Econometrica 77:1829-1863, ) with theory. Further, the paper contributes to a better understanding of the conflicting empirical findings on the causal effect on income per capita from increased life expectancy. [ABSTRACT FROM AUTHOR]