Population Aging, Productivity, and Living Standards
In: The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity
In this chapter, William Scarth examines the relationship between population aging, productivity and growth in living standards and reaches a more optimistic conclusion about the effects of aging on productivity. Indeed, he finding that aging may in fact lead to increases in productivity, even if no policy initiative is taken. He argues that our economy possesses at least three adjustment mechanisms that insulate living standards from the adverse effects of an aging population.
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