Demographic Change and Economic Growth
THE SILVER MARKET PHENOMENON: BUSINESS OPPORTUNITIES IN AN ERA OF DEMOGRAPHIC CHANGE, pp. 3-16, Florian Kohlbacher and Cornelius Herstatt (eds.), Springer, October 2008
Posted: 3 Mar 2012
Date Written: 2008
In this chapter we discuss the relationship between changes in a country’s age structure and its economic growth and productivity. We summarize the recent literature on the impact of a country’s age structure on economic growth and relate the results to our own empirical findings. Our results indicate a positive impact of the age group 50-64 on economic growth. Moreover, a high proportion of people in the age group 15-29 facilitate technology absorption. The use of matched employer-employee data sets allows us to estimate age-productivity profiles at the firm level. Considering all firms in the data set reveals a negative productivity effect of the share of older workers (50). Considering only large firms reveals no impact of the age structure in the mining and manufacturing industries and a negative impact of the share of younger workers for the non-manufacturing sector.
Keywords: economic growth, labor productivity, macro level analysis, firm level analysis
JEL Classification: J11, J24, O40
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