The Age-Productivity Profile:Long-Run Evidence from Italian Regions

Federico Barbiellini Amidei, Matteo Gomellini, Lorenzo Incoronato () and Paolo Piselli

No 2019, RF Berlin - CReAM Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM)

Abstract: This paper leverages spatial and time-series variation in the population age structure of Italian regions to uncover the causal effect of demographic shifts on labour productivity. Such effect is analysed along a ‘first-order’ channel stemming from the direct relation between an individual’s age and productivity, and a ‘second-order’ channel that captures the productivity implications of a more or less dispersed age distribution. We propose an estimation framework that relates labour productivity to the entire age distribution of the working-age population and employs instrumental variable techniques to address endogeneity issues. The estimates return a hump-shaped age-productivity profile, with a peak between 35 and 40 years, as well as a positive productivity effect associated with a more dispersed age distribution.

Keywords: productivity; demography; age distribution; working-age population; long-run (search for similar items in EconPapers)
JEL-codes: J11 J21 N30 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-age, nep-eff, nep-eur and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:2019

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