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Automation, fertility, and labor share in an aging, overlapping generations economy

Author

Listed:
  • Akira Yakita

    (Nanzan University)

Abstract

This paper presents an analysis of the effect of population aging on automation in production using an overlapping generations model with endogenous fertility decisions by individuals. Population aging induces individuals to reduce the number of children they have to prepare for a longer (expected) retirement. If an extension of life expectancy substantially reduces the fertility rate, then population aging decreases the automation capital per worker. However, population aging lowers the labor share.

Suggested Citation

  • Akira Yakita, 2022. "Automation, fertility, and labor share in an aging, overlapping generations economy," Economics Bulletin, AccessEcon, vol. 42(2), pages 889-894.
    • Handle: RePEc:ebl:ecbull:eb-22-00125
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2022/Volume42/EB-22-V42-I2-P75.pdf
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    References listed on IDEAS

    as
    1. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Akira Yakita, 2017. "Population Aging, Fertility and Social Security," Population Economics, Springer, number 978-3-319-47644-5, December.
    4. Prettner, Klaus, 2019. "A Note On The Implications Of Automation For Economic Growth And The Labor Share," Macroeconomic Dynamics, Cambridge University Press, vol. 23(3), pages 1294-1301, April.
    5. Burkhard Heer & Andreas Irmen, 2019. "Automation, Economic Growth, and the Labor Share - A Comment on Prettner (2019) -," CESifo Working Paper Series 7730, CESifo.
    6. Andreas Irmen, 2021. "Automation, growth, and factor shares in the era of population aging," Journal of Economic Growth, Springer, vol. 26(4), pages 415-453, December.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • J1 - Labor and Demographic Economics - - Demographic Economics

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