The age structure change of population and labour productivity impact

Olfa Frini and Khoutem Ben Jedidia ()
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Khoutem Ben Jedidia: ISCAE Manouba University

Economics Bulletin, 2018, vol. 38, issue 4, 1831-1844

Abstract: Paper explores population ageing macroeconomic effects on labour market productivity. It examines the effect of labour force participation rate by age ranges: young adulthood (15-29 years), prime age (30-49), and old age (50-64) on the aggregate labour productivity. Using Tunisian data during 1965-2014, a cointegration long-run relationship with a progressively adjustment process towards equilibrium is found. Age-productivity profile does not follow an inverted U shape. Labour productivity edges down for young worker and keeps the rise for older. Ageing seems did not lead a low performance for the Tunisian labour market. The retirement age delay beyond 60 years-old is advised to gain more in productivity and enhance economic growth.

Keywords: Ageing; Labour force participation rate; Age structure; Labour productivity; Error correction model; Tunisia (search for similar items in EconPapers)
JEL-codes: J1 J8 (search for similar items in EconPapers)
Date: 2018-10-10
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