IDEAS home Printed from https://ideas.repec.org/a/eee/jcecon/v41y2013i1p201-211.html
   My bibliography  Save this article

What are the drivers of TFP in the Aging Economy? Aging labor and ICT capital

Author

Listed:
  • Ilmakunnas, Pekka
  • Miyakoshi, Tatsuyoshi

Abstract

The purpose of this paper is to investigate what are the drivers of the TFP, focusing on the quality of the labor and capital inputs. We investigate how different combinations of age and skill groups in the labor input and the ICT content of the capital input are related to TFP in the manufacturing industries of some OECD countries. We find that among the low-skilled the aging process is a negative driver of productivity, but among the high-skilled it is a positive driver. We also examine how the interactions of ICT intensity and worker age/skill combinations are related to TFP. We suggest labor and ICT indexes which tell how much the development of age/skill group shares would have affected TFP without increase in ICT use, or how much ICT would have affected TFP without changes in work force composition.

Suggested Citation

  • Ilmakunnas, Pekka & Miyakoshi, Tatsuyoshi, 2013. "What are the drivers of TFP in the Aging Economy? Aging labor and ICT capital," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 201-211.
  • Handle: RePEc:eee:jcecon:v:41:y:2013:i:1:p:201-211
    DOI: 10.1016/j.jce.2012.04.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0147596712000285
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James M. Malcomson & Michael J. Prior, 1979. "The Estimation of a Vintage Model of Production for UK Manufacturing," Review of Economic Studies, Oxford University Press, vol. 46(4), pages 719-736.
    2. Jorgenson, Dale W. & Ho, Mun S. & Stiroh, Kevin J., 2003. "Lessons from the US growth resurgence," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 453-470, July.
    3. Caballero, Ricardo J., 1999. "Aggregate investment," Handbook of Macroeconomics,in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 12, pages 813-862 Elsevier.
    4. Oliner, Stephen D. & Sichel, Daniel E., 2003. "Information technology and productivity: where are we now and where are we going?," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 477-503, July.
    5. Pekka Ilmakunnas & Mika Maliranta & Jari Vainiomäki, 2004. "The Roles of Employer and Employee Characteristics for Plant Productivity," Journal of Productivity Analysis, Springer, vol. 21(3), pages 249-276, May.
    6. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2003. "Lessons for Canada from the U.S. Growth Resurgence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 6, pages 3-18, Spring.
    7. Pekka Ilmakunnas & Mika Maliranta, 2005. "Technology, Labour Characteristics and Wage-productivity Gaps," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(5), pages 623-645, October.
    8. Jason G. Cummins & Giovanni L. Violante, 2002. "Investment-Specific Technical Change in the US (1947-2000): Measurement and Macroeconomic Consequences," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 243-284, April.
    9. Susanto Basu & John G. Fernald & Nicholas Oulton & Sylaja Srinivasan, 2003. "The case of the missing productivity growth: or, does information technology explain why productivity accelerated in the United States but not the United Kingdom?," Working Paper Series WP-03-08, Federal Reserve Bank of Chicago.
    10. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, June.
    11. Thomas Lindh & Bo Malmberg, 1999. "Age structure effects and growth in the OECD, 1950-1990," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(3), pages 431-449.
    12. Mukoyama, Toshihiko, 2008. "Endogenous depreciation, mismeasurement of aggregate capital, and the productivity slowdown," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 513-522, March.
    13. Rafael Gómez & Pablo Hernández de Cos, 2008. "Does Population Ageing Promote Faster Economic Growth?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 350-372, September.
    14. Paul Hek & Daniel Vuuren, 2011. "Are older workers overpaid? A literature review," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(4), pages 436-460, August.
    15. Hellerstein, Judith K & Neumark, David & Troske, Kenneth R, 1999. "Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 409-446, July.
    16. Temple, Jonathan R. W., 2001. "Generalizations that aren't? Evidence on education and growth," European Economic Review, Elsevier, vol. 45(4-6), pages 905-918, May.
    17. Herbertsson, Tryggvi Thor, 2003. "Accounting for human capital externalities with an application to the Nordic countries," European Economic Review, Elsevier, vol. 47(3), pages 553-567, June.
    18. Zvi Griliches, 1967. "Production Functions in Manufacturing: Some Preliminary Results," NBER Chapters,in: The Theory and Empirical Analysis of Production, pages 275-340 National Bureau of Economic Research, Inc.
    19. McIntosh, James, 1986. "Economic growth and technical change in Britain 1950-1978," European Economic Review, Elsevier, vol. 30(1), pages 117-128, February.
    20. James Feyrer, 2007. "Demographics and Productivity," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 100-109, February.
    21. van Ark, Bart, 2002. "Measuring the New Economy: An International Comparative Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(1), pages 1-14, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:taf:applec:v:49:y:2017:i:40:p:4013-4025 is not listed on IDEAS
    2. Waleerat Suphannachart, 2017. "What Drives Labour Productivity in the Ageing Agriculture of Thailand?," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(1), pages 1-6.
    3. V. Vandenberghe, 2017. "The productivity challenge. What to expect from better-quality labour and capital inputs?," Applied Economics, Taylor & Francis Journals, vol. 49(40), pages 4013-4025, August.

    More about this item

    Keywords

    TFP; Workforce aging; ICT capital;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jcecon:v:41:y:2013:i:1:p:201-211. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/622864 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.