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

32 Pages Posted: 25 Nov 2009

See all articles by Stephan Brunow

Stephan Brunow

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

Georg Hirte

Technische Universität Dresden Institute of Transport & Economics

Date Written: May 5, 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 urbanization 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: J 1, R 11, R 53

Suggested Citation

Brunow, Stephan and Hirte, Georg, Regional Age Structure and Economic Growth: An Econometric Study for German Region (May 5, 2009). Available at SSRN: https://ssrn.com/abstract=1512719 or http://dx.doi.org/10.2139/ssrn.1512719

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

Technische Universität Dresden Institute of Transport & Economics ( email )

Würzburger Str. 35
Dresden, 01062
Germany

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