Labour force ageing and productivity growth

Marcos Poplawski-Ribeiro

Applied Economics Letters, 2020, vol. 27, issue 6, 498-502

Abstract: This paper reassesses the empirical relationship between ageing and total factor productivity (TFP) growth at the country level. We contribute to the literature by (i) extending the sample coverage to 2014; (ii) adding a new identification strategy to instrument labour force ageing both in advanced (AEs) and emerging market economies (EMEs); and (iii) refining the empirical test with a focus on the age structure of employed workers. Our econometric evidence indicates that ageing has played a significant role in slowing down TFP growth both for AEs and EMEs over the recent decades, and may remain a drag on productivity growth in the years to come.

Date: 2020
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DOI: 10.1080/13504851.2019.1637509

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