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Youth dependency and total factor productivity

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  • Tomas Kögel

    (Max Planck Institute for Demographic Research, Rostock, Germany)

Abstract

Recent literature shows empirical support for an effect of demographic age structure on economic growth. This literature does not give attention to the possibility that age structure might also have an effect on total factor productivity. Much of the recent literature on economic growth has stressed that an understanding of cross-country differences in output per worker is needed. That literature argues that the most important determinant of international differences in output per worker is differences in total factor productivity. This paper finds empirical evidence in cross-country data for the thesis that the youth dependency ratio (the population below working age divided by the population of working age) reduces ´residual´ growth, which measures total factor productivity growth. For this reason, the paper demonstrates that age structure has an effect on the most important determinant of international differences in output per worker.

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Bibliographic Info

Paper provided by Max Planck Institute for Demographic Research, Rostock, Germany in its series MPIDR Working Papers with number WP-2001-030.

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Length: 45 pages
Date of creation: Sep 2001
Date of revision:
Handle: RePEc:dem:wpaper:wp-2001-030

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Web page: http://www.demogr.mpg.de/

Related research

Keywords: dependency ratio; developing countries; economic growth; young population;

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Citations

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Cited by:
  1. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers, Economic Growth Center, Yale University 928, Economic Growth Center, Yale University.
  2. Geoffrey Dunbar & Stephen Easton, 2013. "Working parents and total factor productivity growth," Journal of Population Economics, Springer, Springer, vol. 26(4), pages 1431-1456, October.
  3. Luca Marchiori, 2011. "Demographic Trends and International Capital Flows in an Integrated World," CREA Discussion Paper Series 11-05, Center for Research in Economic Analysis, University of Luxembourg.
  4. Alexia Prskawetz & Thomas Kögel & Warren C. Sanderson & Sergei Scherbov, 2009. "The Effects of Age Structure on Economic Growth: An Application of Probabilistic Forecasting in India," Working Papers, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna 0403, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  5. Akira Yakita, 2010. "Human capital accumulation, fertility and economic development," Journal of Economics, Springer, Springer, vol. 99(2), pages 97-116, March.
  6. James Feyrer, 2009. "The US Productivity Slowdown, the Baby Boom, and Management Quality," NBER Working Papers 15474, National Bureau of Economic Research, Inc.
  7. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1374, European Regional Science Association.
  8. Jesus Crespo Cuaresma & Martin Lábaj & Patrik Pruzinský, 2014. "Prospective Ageing and Economic Growth in Europe," Department of Economics Working Papers wuwp165, Vienna University of Economics, Department of Economics.
  9. Akira Yakita, 2012. "Different demographic changes and patterns of trade in a Heckscher–Ohlin setting," Journal of Population Economics, Springer, Springer, vol. 25(3), pages 853-870, July.
  10. Misbah Tanveer Choudhry, 2013. "Age Dependency and Labor Productivity Divergence," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 113/2013, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  11. Akinlo, Anthony Enisan, 2005. "Impact of Macroeconomic Factors on Total Factor Productivity in Sub-Saharan African Countries," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2005/39, World Institute for Development Economic Research (UNU-WIDER).
  12. Douglas Gollin & Fabian Lange, 2013. "Equipping immigrants: migration flows and capital movements in small open economies," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 149(4), pages 749-777, December.
  13. Serkan Degirmenci, 2011. "Do Institutions Matter for Regional Economic Growth and Development? The Case of Turkey," ERSA conference papers ersa11p1180, European Regional Science Association.

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