IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v64y2018i4p872-899.html
   My bibliography  Save this article

Aging, Human Capital, and Productivity in France: A Generational Accounting Perspective

Author

Listed:
  • Xavier Chojnicki
  • Paul Eliot Rabesandratana

Abstract

The aim of this paper is to highlight the potential productivity gains resulting from improvements in the (i) educational attainment and (ii) health status of the working‐age population. For that purpose, we develop a Generational Accounting Model applied to the French economy. Using the conventional methodology of generational accounting, we first estimate the adjustments that will be necessary to ensure the sustainability of French fiscal policy in the long term under the assumption that individual taxes and transfers grow at the same rate as labor productivity. However, this assumption does not account for the explicit determinants of individual productivity. Therefore, we then explain how productivity growth is partly due to the French population's skill level and its health level, which is approximated by the survival rate of adults. We estimate that the increased educational attainment and improved adult survival rate in France generate potentially important productivity gains that could significantly challenge the weight of the burden induced by aging. Therefore, we estimate that this change could reduce the tax burden bequeathed to future generations by 79 percent. Our results are robust to the main assumptions.

Suggested Citation

  • Xavier Chojnicki & Paul Eliot Rabesandratana, 2018. "Aging, Human Capital, and Productivity in France: A Generational Accounting Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(4), pages 872-899, December.
    • Handle: RePEc:bla:revinw:v:64:y:2018:i:4:p:872-899
    DOI: 10.1111/roiw.12306
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/roiw.12306
    Download Restriction: no
    File URL: https://libkey.io/10.1111/roiw.12306?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qiling Lu & Jing Hua, 2023. "Micro-Household Human Capital Investment Decisions and a Simulation Study from the Intergenerational Conflict Perspective," IJERPH, MDPI, vol. 20(3), pages 1-21, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:64:y:2018:i:4:p:872-899. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.