Demographic Change, Human Capital and Endogenous Growth
Alexander Ludwig (),
Thomas Schelkle () and
No 08-43, Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim, Sonderforschungsbereich 504, University of Mannheim
This paper employs a large scale overlapping generations (OLG) model with endogenous education to evaluate the quantitative role of human capital adjustments 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.
Pages: 50 pages
Note: We thank Dirk Krüuger, Wolfgang Kuhle and Matthias Weiss for helpful discussions and several seminar participants at the University Frankfurt, University of Mannheim and at the 13th International Conference of the Society for Computational Economics in Montreal for helpful comments. Financial support by the German National Research Foundation (DFG) through SFB 504, the State of Baden-Württemberg and the German Insurers Association (GDV) is gratefully acknowledged.
References: Add references at CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
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)
Persistent link: https://EconPapers.repec.org/RePEc:xrs:sfbmaa:08-43
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Sonderforschungsbereich 504 Publications from Sonderforschungsbereich 504, Universität Mannheim Contact information at EDIRC., Sonderforschungsbereich 504, University of Mannheim
Bibliographic data for series maintained by Carsten Schmidt (). This e-mail address is bad, please contact .