Technology Adoption and Demographic Change

Karsten Wasiluk ()

No 2014-05, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

Abstract: This paper studies the effect of demographic change on the technology distribution of an economy and on aggregate productivity growth. In the quantitative dynamic model, firms decide on employment and the technology they use subject to an aging workforce. Firms with a higher share of elderly workers update their technology less often and prefer older technologies than firms with a younger workforce. The shorter expected worklife of elderly workers makes firms reluctant to train them for new technologies. I calibrate the model for the German economy and simulate the projected demographic change. The results indicate that labor force aging reduces the realized annual productivity growth rate by 0.28 percentage points between 2010–2025.

Keywords: Demographic Change; TFP growth; Retirement Policies (search for similar items in EconPapers)
JEL-codes: J11 J21 J26 O33 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2014-10-22
New Economics Papers: this item is included in nep-age, nep-dem, nep-dge and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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