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An Overlapping Generation Model of Labour Productivity and Economic Growth in Colombia

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  • Fernando MESA PARRA

Abstract

This paper focuses on the decomposition of real wages in Colombia both by workers' ages and by cohorts, which overlap over time. The paper analyses how the Colombia's labour structure has undergone important changes in the period 1982-2007. This period has been characterized by a demographic transition that has tilted the balance from a relatively young population to an older one. The effects of capital accumulation have been estimated and modelled considering the presence of ever more sophisticated machinery, usually replacing less-skilled, younger workers, in relation to older and more qualified ones. In general real wages present a curved shape for each generation, as is acknowledged in the life-cycle hypothesis, according to which people generally start their working life with low incomes and rising debts and then obtain higher income and accumulate assets.

Suggested Citation

  • Fernando MESA PARRA, 2015. "An Overlapping Generation Model of Labour Productivity and Economic Growth in Colombia," Archivos de Economía 13009, Departamento Nacional de Planeación.
    • Handle: RePEc:col:000118:013009
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    File URL: https://colaboracion.dnp.gov.co/CDT/Estudios%20Econmicos/427.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Demographic trends; Macroeconomic effects; Wage levels andstructure; Wage differential; Intergenerational income distribution.;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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