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Aging labor, ICT capital, and productivity in Japan and Korea

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  • Lee, Jong-Wha
  • Song, Eunbi
  • Kwak, Do Won

Abstract

This study examines how aging affects labor productivity using industry-level data of Japan and Korea. The analysis shows that, for both Japan and Korea, aging has positive effects on labor productivity when older workers are working in industries with a large share of information and communication technology (ICT) in the capital stock. We also find that, on average, older workers exert positive effects on labor productivity across all industries when they are low-educated in Japan and high-educated in Korea. In addition, a complementary effect between ICT capital and older workers is observed for both high- and low-educated workers in Japan but only for low-educated workers in Korea. The complementarity between ICT and old workers existed in both manufacturing and services industries of Korea and Japan.

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  • Lee, Jong-Wha & Song, Eunbi & Kwak, Do Won, 2020. "Aging labor, ICT capital, and productivity in Japan and Korea," Journal of the Japanese and International Economies, Elsevier, vol. 58(C).
    • Handle: RePEc:eee:jjieco:v:58:y:2020:i:c:s0889158320300320
    DOI: 10.1016/j.jjie.2020.101095
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    Cited by:

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    3. Higo, Masahiro, 2023. "What caused the downward trend in Japan’s labor share?," Japan and the World Economy, Elsevier, vol. 67(C).
    4. Otsu, Keisuke & Shibayama, Katsuyuki, 2022. "Population aging, government policy and the postwar Japanese economy," Journal of the Japanese and International Economies, Elsevier, vol. 64(C).
    5. Zhong, Mei-Rui & Cao, Meng-Yuan & Zou, Han, 2022. "The carbon reduction effect of ICT: A perspective of factor substitution," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    6. Lee, Dongyeol, 2021. "Propagation of economic shocks through vertical and trade linkages in Korea: An empirical analysis," Japan and the World Economy, Elsevier, vol. 60(C).
    7. Kim, Hoolda & Song Lee, Bun, 2023. "Aging workforce, wages, and productivity: Do older workers drag productivity down in Korea?," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    8. Lee, Jong-Wha & Kwak, Do Won & Song, Eunbi, 2022. "Can older workers stay productive? The role of ICT skills and training," Journal of Asian Economics, Elsevier, vol. 79(C).
    9. Nam, Jinyoung & Kim, Seongcheol, 2022. "Why do elderly people feel negative about the use of self-service technology and how do they cope with the negative emotions?," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265661, International Telecommunications Society (ITS).

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    More about this item

    Keywords

    Aging; ICT; Productivity; Complementarity; Japan; Korea;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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