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What decreases the TFP ? The aging labor and ICT imbalance

Author

Listed:
  • Tatsuyoshi Miyakoshi

    (Osaka School of International Public Policy, Osaka University)

  • Pekka Ilmakunnas

    (Helsinki School of Economics)

Abstract

The purpose of this paper is to investigate what decreases TFP, why TFP has decreased in some countries and how large the decreases of TFP are. We focus on the quality of labor and capital inputs and use cross country data for the manufacturing industries of some OECD countries. We provide a comprehensive empirical investigation based on two hypotheses, substitutability and complementarity of labor input age and skill categories. Further, we provide an aging index, which tells how much the share of ICT capital should be increased to counterbalance decreases of TFP caused by the aging of the labor input.

Suggested Citation

  • Tatsuyoshi Miyakoshi & Pekka Ilmakunnas, 2009. "What decreases the TFP ? The aging labor and ICT imbalance," Discussion Papers in Economics and Business 09-03, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:0903
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    References listed on IDEAS

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    More about this item

    Keywords

    TFP; quality of labor and capital; substitutability and complementarity of age and skill groups; aging index;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • J00 - Labor and Demographic Economics - - General - - - General
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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