Regional Age Structure and Economic Growth: An Econometric Study for German Regions

Dresden Discussion Paper in Economics No. 04/09

32 Pages Posted: 19 May 2009 Last revised: 17 Jun 2009

See all articles by Stephan Brunow

Stephan Brunow

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Georg Hirte

Dresden University of Technology - Faculty of Economics and Business Management

Date Written: April 1, 2009

Abstract

This paper analyses the impact of the regional age structure on growth of German regions. Based on a neoclassical growth model an augmented Solow model was derived and estimated in a spatial econometric approach. Besides labor and human capital, public spendings and urbanisation measures are controlled for. Adding the age structure of the employed labor force, which we use as proxy for the age pattern of human capital, improves the regression model significantly. Spatial autocorrelation is controlled for and supports OLS results. To get deeper insights in the effectiveness of the age structure quantile regression techniques are applied to distinguish the effects between various levels of growth rates. The results of the different estimation approaches provide evidence that the age structure matters for growth.

Keywords: age structure, growth, public spending

JEL Classification: J1, R11, R53

Suggested Citation

Brunow, Stephan and Hirte, Georg, Regional Age Structure and Economic Growth: An Econometric Study for German Regions (April 1, 2009). Dresden Discussion Paper in Economics No. 04/09, Available at SSRN: https://ssrn.com/abstract=1406925 or http://dx.doi.org/10.2139/ssrn.1406925

Stephan Brunow (Contact Author)

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

HOME PAGE: http://www.iab.de

Georg Hirte

Dresden University of Technology - Faculty of Economics and Business Management ( email )

Mommsenstrasse 13
Dresden, D-01062
Germany

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