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Labour force ageing and productivity performance in Canada

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  • Jianmin Tang
  • Carolyn MacLeod

Abstract

This paper studies the direct impact of labour force ageing on productivity growth in 10 Canadian provinces over the period 1981-2001, with an outlook to 2046. It shows that older workers are, on average, less productive than younger workers and that labour force ageing has a modest negative direct impact on productivity growth in Canada. The impact has increased since the middle of the 1990s, will peak in 2001-11, and tail off afterwards. During the peak period, productivity growth in Canada will be reduced by 0.13 to 0.23 percentage points per year, with Newfoundland being hit the hardest.

Suggested Citation

  • Jianmin Tang & Carolyn MacLeod, 2006. "Labour force ageing and productivity performance in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 39(2), pages 582-603, May.
  • Handle: RePEc:cje:issued:v:39:y:2006:i:2:p:582-603
    DOI: 10.1111/j.0008-4085.2006.00361.x
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    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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