Population Aging, Productivity, and Growth in Living Standards
Population aging creates both a problem (higher taxes on a small group of workers to finance higher public pension and health care costs) and automatic adjustments that help to address that problem. The prospect of longer retirement involves an increased incentive to invest in physical capital, and labour scarcity leads to higher pre-tax wages and an increased incentive to invest in human capital. Thus, productivity growth can be favourably affected by aging. The likely empirical magnitude of this beneficial effect is assessed in this paper.
|Date of creation:||Jan 2003|
|Date of revision:|
|Contact details of provider:|| Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4|
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Web page: http://www.mcmaster.ca/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frank T. Denton & Byron G. Spencer, 1997.
"Population, Labour Force, and Long-term Economic Growth,"
Independence and Economic Security of the Older Population Research Papers
25, McMaster University.
- Frank T. Denton & Byron G. Spencer, 1997. "Population, Labour Force and Long-term Economic Growth," Quantitative Studies in Economics and Population Research Reports 336, McMaster University.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Emery, H. & Rongve, I., 1996.
"Much Ado About Nothing? Demographic Bulges, the Productivity Puzzle and CCP Reform,"
70, Regina - Department of Economics.
- J. C. Herbert Emery & Ian Rongve, 1999. "Much Ado About Nothing? Demographic Bulges, The Productivity Puzzle, And Cpp Reform," Contemporary Economic Policy, Western Economic Association International, vol. 17(1), pages 68-78, 01.
- Michael B. Devereux & David R. F. Love, 1994. "The Effects of Factor Taxation in a Two-Sector Model of Endogenous Growth," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 509-36, August.
- Olivier J. Blanchard, 1984.
"Debt, Deficits and Finite Horizons,"
NBER Working Papers
1389, National Bureau of Economic Research, Inc.
- Søren Nielsen, 1994. "Social security and foreign indebtedness in a small open economy," Open Economies Review, Springer, vol. 5(1), pages 47-63, March.
When requesting a correction, please mention this item's handle: RePEc:mcm:sedapp:90. 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: ()
If references are entirely missing, you can add them using this form.