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The Demographics of Technology Adoption and Productivity Growth

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  • Nils H. Lehr

Abstract

Young workers adopt new technologies at higher rates than old workers. I develop an overlappinggenerations model linking this lifecycle gradient to technology adoption, wages, and innovation. Using U.S. commuting-zone variation and a historical-births instrument, I show that younger workforces expand computerscience employment and raise wages, especially for young workers. Exposure through trade to youth waves in foreign markets also increases R&D employment and patenting. Calibrated to these responses, the model attributes about one quarter of the late-1990s U.S. productivity acceleration to the baby boom’s youth wave, partly recasting the IT boom as a demographic episode. Aging workforces therefore create a headwind to endogenous technology adoption and innovation.

Suggested Citation

  • Nils H. Lehr, 2026. "The Demographics of Technology Adoption and Productivity Growth," IMF Working Papers 2026/210, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2026/210
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