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Labour force ageing and productivity performance in Canada

Author

Listed:
  • 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
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    Citations

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    Cited by:

    1. van Dalen, H.P. & Henkens, C.J.I.M. & Schippers, J., 2009. "Unraveling the age-productivity nexus : Confronting perceptions of employers and employees," Discussion Paper 2009-4, Tilburg University, Center for Economic Research.
    2. repec:spr:epolit:v:35:y:2018:i:1:d:10.1007_s40888-017-0079-x is not listed on IDEAS
    3. Pekkarinen, Tuomas & Uusitalo, Roope, 2012. "Aging and Productivity: Evidence from Piece Rates," IZA Discussion Papers 6909, Institute for the Study of Labor (IZA).
    4. Liis Roosaar & Jaan Masso & Urmas Varblane, 2017. "The Structural Change And Labour Productivity Of Firms: Do Changes In The Age And Wage Structure Of Employees Matter?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 103, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    5. Donghyun Park & Kwanho Shin, 2012. "Impact of population aging on Asia’s future growth," Chapters,in: Aging, Economic Growth, and Old-Age Security in Asia, chapter 3, pages 83-110 Edward Elgar Publishing.
    6. Martha Alicia Yánez Contreras & Cristian David Maldonado Pedroza & Katherin Paola Del Risco Serje, 2016. "Participación laboral de la población de 60 años de edad o más en Colombia," REVISTA DE ECONOMÍA DEL CARIBE 014790, UNIVERSIDAD DEL NORTE.
    7. Anders, Sven M., 2010. "Ageing And Consumption – The Impact Of Demographic Change On Food Expenditure Patterns," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116442, European Association of Agricultural Economists;Agricultural and Applied Economics Association.
    8. Jean-Francois Arsenault & Andrew Sharpe, 2008. "An Analysis of the Causes of Weak Labour Productivity Growth in Canada since 2000," International Productivity Monitor, Centre for the Study of Living Standards, vol. 16, pages 14-39, Spring.
    9. Andrés Rodríguez-Pose & Vassilis Tselios, 2010. "Inequalities in income and education and regional economic growth in western Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 349-375, April.
    10. Karsten Wasiluk, 2014. "Technology Adoption and Demographic Change," Working Paper Series of the Department of Economics, University of Konstanz 2014-05, Department of Economics, University of Konstanz.
    11. repec:wfo:wstudy:41128 is not listed on IDEAS
    12. Mahlberg, Bernhard & Freund, Inga & Prskawetz, Alexia, 2011. "Ageing, productivity and wages in Austria: Evidence from a matched employer-employee data set at the sector level," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 02/2011, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
    13. Andrea Kunnert & Peter Mayerhofer & Dieter Pennerstorfer, 2012. "Demographic Change and Regional Productivity Growth in Austria," WIFO Monatsberichte (monthly reports), WIFO, vol. 85(11), pages 863-874, November.
    14. Bernhard Mahlberg & Inga Freund & Alexia Prskawetz, 2013. "Ageing, productivity and wages in Austria: sector level evidence," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(4), pages 561-584, November.

    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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