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Economic usefulness of older workers in terms of productivity in the modern world

Author

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  • Janis Kudins

    (Daugavpils University, Latvia)

Abstract

Along with the modern phenomenon of population aging, economists are also concerned about a shift in the composition of the workforce from relatively young to relatively old workers. This study is aimed to empirically prove the hypothesis that in the modern world the economic usefulness of older workers in terms of productivity is determined, in addition to the characteristics of the elderly workforce, by factors characterizing the level of territory development. The theoretical background and methodology of this study is formed on the basis of the concept of “specific human capital†by G. Becker and the conception of endogenous growth. The author uses the latest statistics for 63 countries of the world and several methods of quantitative data analysis: correlation analysis, regression analysis and cluster analysis – in order to detect not only correlational parallelism, but also causal relationships between the variables included in the proof of the research hypothesis. The results of the empirical analysis show that technological readiness, along with a high level of lifelong learning in the country, are the catalysts that ensure the economic usefulness of older workers in terms of productivity in the countries of the modern world. The author also concludes that a baseless raising the retirement age in the country, without considering the above factors that characterize the level of development of this country in technological and learning aspects, does not allow the effective use of the economic potential of older workers.

Suggested Citation

  • Janis Kudins, 2022. "Economic usefulness of older workers in terms of productivity in the modern world," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 4(1), pages 40-56, March.
    • Handle: RePEc:ssi:jouird:v:4:y:2022:i:1:p:40-56
    DOI: 10.9770/IRD.2022.4.1(3)
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    References listed on IDEAS

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    1. Becker, Gary S, 1993. "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 385-409, June.
    2. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Time and Goods over the Life Cycle," NBER Books, National Bureau of Economic Research, Inc, number ghez75-1, July.
    3. Barthel, Jens, 2008. "Can age discrimination be justified with a lower productivity of older workers?," MPRA Paper 14682, University Library of Munich, Germany.
    4. Gilbert Ghez & Gary S. Becker, 1975. "A Theory of the Allocation of Time and Goods Over the Life Cycle," NBER Chapters, in: The Allocation of Time and Goods over the Life Cycle, pages 1-45, National Bureau of Economic Research, Inc.
    5. Mirela Alina COCALIA (CRĂCIUN), 2015. "Knowledge And Information – New Factors Of Production In The Context Of Globalization," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(1), pages 1-17, January.
    6. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Goods Over the Life Cycle," NBER Chapters, in: The Allocation of Time and Goods over the Life Cycle, pages 46-82, National Bureau of Economic Research, Inc.
    7. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Time Over the Life Cycle," NBER Chapters, in: The Allocation of Time and Goods over the Life Cycle, pages 83-132, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    older workers; economic usefulness; productivity; specific human capital; endogenous growth;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • 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

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