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Demographics and Recent Productivity Performance: Insights from Cross-Country Comparisons

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  • Beaudry, Paul
  • Collard, Fabrice
  • Green, David A.

Abstract

Over the last few decades, countries have experienced quite different patterns of productivity growth. In this paper, we emphasize the role of country level demographics in explaining these differences. In particular, looking over the period 1960-2002, we show that cross-country data support the notion that, starting in the late 1970s, countries went through a period of technological transition that lasted at least until the mid-1990s for the fastest adjusting countries and is still proceeding for the slower adjusting countries. The main claim of the paper is that the country-level rate of labour growth was a key factor driving the speed of adjustment to the new technological paradigm, implying that much of the cross-country difference in economic performance over recent decades can be explained by demographic differences across countries as opposed to the many other factors emphasized in the literature.

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Bibliographic Info

Paper provided by University of Toulouse 1 Capitole in its series Open Access publications from University of Toulouse 1 Capitole with number http://neeo.univ-tlse1.fr/274/.

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Date of creation: 2005
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Publication status: Published in Canadian Journal of Economics (2005) v.38, p.309-344
Handle: RePEc:ner:toulou:http://neeo.univ-tlse1.fr/274/

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Web page: http://www.univ-tlse1.fr/

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Cited by:
  1. Färnstrand Damsgaard, Erika & Krusell, Per, 2010. "The World Distribution of Productivity: Country TFP Choice in a Nelson-Phelps Economy," Working Paper Series 850, Research Institute of Industrial Economics.
  2. Dew-Becker, Ian & Gordon, Robert J, 2008. "The Role of Labour Market Changes in the Slowdown of European Productivity Growth," CEPR Discussion Papers 6722, C.E.P.R. Discussion Papers.
  3. Brito, Paulo & Dilão, Rui, 2010. "Equilibrium price dynamics in an overlapping-generations exchange economy," Journal of Mathematical Economics, Elsevier, vol. 46(3), pages 343-355, May.
  4. Paul Beaudry & David A. Green & Benjamin Sand, 2007. "Spill-Overs from Good Jobs," NBER Working Papers 13006, National Bureau of Economic Research, Inc.
  5. Albert van der Horst & Hugo Rojas-Romagosa & Leon Bettendorf, 2009. "Does employment affect productivity?," CPB Discussion Paper 119, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Paul Beaudry & Fabrice Collard & David A. Green, 2005. "Explaining Productivity Growth: The Role of Demographics," International Productivity Monitor, Centre for the Study of Living Standards, vol. 10, pages 45-58, Spring.

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