Population Aging and Income Inequality in a Semi‐Endogenous Growth Model ^*

Abstract Using a continuous‐time overlapping generations model with semi‐endogenous growth, this study analyzes the impact of population aging on income inequality. We characterize the stationary distributions of household income and wealth and examine how increases in life expectancy and declines in fertility rates affect these distributions. Numerical simulations indicate that longer life expectancy reduces inequality, whereas lower fertility rates increase it. We further explore the distributional effects of exogenous productivity growth under varying degrees of population aging.