Demographic change, human capital and endogenous growth

Alexander Ludwig, Thomas Schelkle () and Edgar Vogel

No 08-43, Papers from Sonderforschungsbreich 504

Abstract: This paper employs a large scale overlapping generations (OLG) model with endogenous education to evaluate the quantitative role of human capital adjustment for the economic consequences of demographic change. We find that endogenous human capital formation is an important adjustment mechanism which substantially mitigates the macroeconomic impact of demographic change. Welfare gains from demographic change for newborn households are approximately three times higher when households endogenously adjust their education. Low ability agents experience higher welfare gains. Endogenous growth through human capital formation is found to increase the long-run growth rate in the economy by 0.2-0.4 percentage points.

Keywords: population aging; human capital; endogeous growth; heterogenous agents; distrubtion of welfare (search for similar items in EconPapers)
JEL-codes: C68 D33 E17 E25 J11 J24 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://madoc.bib.uni-mannheim.de/2386/1/dp08_43.pdf

Related works:
Working Paper: Demographic Change, Human Capital and Endogenous Growth (2007)
Working Paper: Demographic Change, Human Capital and Endogenous Growth (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mnh:spaper:2386

Access Statistics for this paper

More papers in Papers from Sonderforschungsbreich 504 Contact information at EDIRC.
Bibliographic data for series maintained by Katharina Rautenberg ().