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Labour force ageing and productivity performance in Canada

Author

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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. JEL classification: J21, O47 Vieillissement de la main d’œuvre et croissance de la productivité au Canada. Ce mémoire étudie l’impact direct du vieillissement de la main d’œuvre sur la croissance de la productivité dans dix provinces canadiennes au cours de la période 1981–2001. On montre que les travailleurs plus âgés sont en moyenne moins productifs que les plus jeunes, et que le vieillissement a un impact négatif modeste sur la croissance de la productivité au Canada. L’impact s’est accru depuis le milieu des années 1990, va atteindre son sommet dans la période 2001–2011, et diminuer dans l’après. Durant la période de pointe, la croissance de la productivité sera réduite d’environ 0.13 à 0.23 point de pourcentage par année. Terreneuve sera la province la plus fortement touchée.

Suggested Citation

  • Jianmin Tang & Carolyn MacLeod, 2006. "Labour force ageing and productivity performance in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(2), pages 582-603, May.
    • Handle: RePEc:wly:canjec:v:39:y:2006:i:2:p:582-603
    DOI: 10.1111/j.0008-4085.2006.00361.x
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    Cited by:

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    2. van Dalen, H.P. & Henkens, C.J.I.M. & Schippers, J., 2009. "Unraveling the age-productivity nexus : Confronting perceptions of employers and employees," Other publications TiSEM afd5360a-f62d-43b6-a323-f, Tilburg University, School of Economics and Management.
    3. Andrew Sharpe, 2011. "Is Ageing a Drag on Productivity Growth? A Review Article on Ageing, Health and Productivity: The Economics of Increased Life Expectancy," International Productivity Monitor, Centre for the Study of Living Standards, vol. 21, pages 82-94, Spring.
    4. Christine Mayrhuber & Hedwig Lutz & Ingrid Mairhuber, 2021. "Erwerbsaustritt, Pensionsantritt und Anhebung des Frauenpensionsantrittsalters ab 2024. Potentielle Auswirkungen auf Frauen, Branchen und Betriebe," WIFO Studies, WIFO, number 67348, August.
    5. Henkens, C.J.I.M. & van Dalen, H.P., 2011. "The employer’s perspective on retirement," Other publications TiSEM 58a429cc-e4d3-48b5-95fd-a, Tilburg University, School of Economics and Management.
    6. Kim, Hoolda & Song Lee, Bun, 2023. "Aging workforce, wages, and productivity: Do older workers drag productivity down in Korea?," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    7. Viktorija Bobinaite & Inga Konstantinaviciute & Akvile Cibinskiene & Daiva Dumciuviene, 2022. "Labour Productivity as a Factor of Tangible Investment in Companies Producing Wind Energy Components and Its Impacts: Case of Lithuania," Energies, MDPI, vol. 15(13), pages 1-29, July.
    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. Taehwan Rhee & Jacob Wood & Jungsuk Kim, 2022. "Digital Transformation as a Demographic and Economic Integrated Policy for Southeast Asian Developing Countries," Sustainability, MDPI, vol. 14(5), pages 1-19, March.

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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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