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Employment and Growth in an Aging Society. A Simulation Study for Austria

Author

Listed:
  • Baumgartner, Josef

    (Austrian Institute of Economic Research (WIFO))

  • Hofer, Helmut

    (Department of Economics and Finance, Institute for Advanced Studies (IHS), Vienna)

  • Kaniovski, Serguei

    (Austrian Institute of Economic Research (WIFO))

  • Schuh, Ulrich

    (Institute for Advanced Studies (IHS), Vienna)

  • Url, Thomas

    (Austrian Institute of Economic Research (WIFO))

Abstract

In this study we use a long run macroeconomic model for Austria to simulate the effects of aging on employment, output growth, and the solvency of the social security system. By disaggregating the population into six age cohorts and modelling sex specific participation rates for each cohort, we are able to account for the future demographic trends. Apart from a baseline scenario, we perform three alternative simulations that highlight the effects of aging from different perspectives. These include (1) purely demographic developments, (2) increasing labour market imperfections, and (3) higher economic growth due to a productivity shock.

Suggested Citation

  • Baumgartner, Josef & Hofer, Helmut & Kaniovski, Serguei & Schuh, Ulrich & Url, Thomas, 2004. "Employment and Growth in an Aging Society. A Simulation Study for Austria," Economics Series 163, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsesp:163
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    File URL: https://irihs.ihs.ac.at/id/eprint/1602
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    References listed on IDEAS

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    11. Josef Baumgartner & Helmut Hofer & Serguei Kaniovski & Ulrich Schuh & Thomas Url, 2004. "A Long-run Macroeconomic Model of the Austrian Economy (A-LMM). Model Documentation and Simulations," WIFO Working Papers 224, WIFO.
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    Cited by:

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    2. Kluge, Jan & Lappoehn, Sarah & Plank, Kerstin, 2020. "The Determinants of Economic Competitiveness," IHS Working Paper Series 24, Institute for Advanced Studies.

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    More about this item

    Keywords

    Economic growth; Aging; Austria;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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