Decreasing Fertility, Economic Growth and the Intergenerational Wage Gap
AbstractPersistent low fertility rates lead to lower population growth rates and eventually also to decreasing population sizes in most industrialized countries. There are fears that this demographic development is associated with declines in per capita GDP and possibly also increasing inequality of the wage distribution. We investigate whether this is true in the context of neoclassical growth models, augmented with endogenous fertility decisions and endogenous educational decisions. Furthermore we allow for imperfect substitutability across workers of different age in the production process and learning by doing effects as well as human capital depreciation. In particular, we assess the intergenerational wage redistribution effects which follow after a demographic change to persistent low fertility rates.
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Bibliographic InfoPaper provided by Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna in its series Working Papers with number 0906.
Length: 24 pages
Date of creation: Aug 2009
Date of revision:
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Web page: http://www.oeaw.ac.at/vid/
Population decline; economic growth; intergenerational wage gap.;
Other versions of this item:
- Klaus Prettner & Alexia Prskawetz, 2010. "Decreasing fertility, economic growth and the intergenerational wage gap," Empirica, Springer, vol. 37(2), pages 197-214, May.
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-09-19 (Economics of Ageing)
- NEP-ALL-2009-09-19 (All new papers)
- NEP-BEC-2009-09-19 (Business Economics)
- NEP-DGE-2009-09-19 (Dynamic General Equilibrium)
- NEP-FDG-2009-09-19 (Financial Development & Growth)
- NEP-LAB-2009-09-19 (Labour Economics)
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