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Imitation versus innovation in an aging society: international evidence since 1870

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  • James Ang
  • Jakob Madsen

Abstract

The budgetary implications of an aging population in the OECD are often considered dire. This study argues that this need not be the case provided that older educated workers are more innovative than their younger counterparts and that the workers with tertiary education stay in the labor force until their 60s. In using a panel of 21 OECD countries over the period 1870–2009, this paper estimates the productivity growth effects of education for different age groups, through the channels of innovation and imitation. The results show that educated workers are highly innovative and that the propensity to innovate increases sharply with age. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • James Ang & Jakob Madsen, 2015. "Imitation versus innovation in an aging society: international evidence since 1870," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 299-327, April.
    • Handle: RePEc:spr:jopoec:v:28:y:2015:i:2:p:299-327
    DOI: 10.1007/s00148-014-0513-0
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    More about this item

    Keywords

    Productivity growth; Human capital; Age structure; Innovation; I20; O30; O40;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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