Population aging and structural transformation

Andrei Levchenko, Javier Cravino and Marco Rojas

No 14026, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We quantify the role of population aging in the structural transformation process. Household-level data from the U.S. show that the fraction of expenditures devoted to services increases with household age. We use a shift-share decomposition and a quantitative model to show that U.S. population aging accounted for about a fifth of the observed increase in the service share in consumption between 1982 and 2016. The contribution of population aging to the rise in the service share is about the same size as the contribution of real income growth, and about half as large as that of changes in relative prices.

Keywords: Aging; Structural transformation; Deindustrialization (search for similar items in EconPapers)
JEL-codes: E2 O1 O4 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-age and nep-dem
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Population Aging and Structural Transformation (2022)
Working Paper: Population Aging and Structural Transformation (2019)
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