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The Wealth of Working Nations

Author

Listed:
  • Jesús Fernández-Villaverde
  • Gustavo Ventura
  • Wen Yao

Abstract

Due to aging populations, the gap between GDP growth per capita and GDP growth per working-age adult (or per hour worked) has widened in many advanced economies. Countries like Japan, which have shown lackluster GDP growth per capita, have performed surprisingly well in terms of GDP growth per working-age adult (or per hour worked). Many advanced economies are also following similar balanced growth paths per working-age adult despite significant differences in the levels of GDP per working-age adult. We calibrate a standard neoclassical growth model to reflect changes in the working-age population for each economy. This model aligns more closely with the data for all the economies in our sample when we match GDP growth per working-age adult rather than when we match GDP growth per capita, the “canonical” calibration target.

Suggested Citation

  • Jesús Fernández-Villaverde & Gustavo Ventura & Wen Yao, 2023. "The Wealth of Working Nations," NBER Working Papers 31914, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31914
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    Cited by:

    1. Abay, Kibrom A. & Wondale, Meseret & Korir, Josphat K. & Bachewe, Fantu Nisrane & Araya, Mesele & Breisinger, Clemens, 2025. "The landscape of youth engagement in labor markets in Africa: Are youth driving structural transformation?," GSSP working papers 2382, International Food Policy Research Institute (IFPRI).
    2. Fernández-Villaverde, Jesús & Ventura, Gustavo & Yao, Wen, 2025. "The wealth of working nations," European Economic Review, Elsevier, vol. 173(C).
    3. Mark Budolfson & Michael Geruso & Kevin J. Kuruc & Dean Spears & Sangita Vyas, 2025. "Is Less Really More? Comparing the Climate and Productivity Impacts of a Shrinking Population," NBER Working Papers 33932, National Bureau of Economic Research, Inc.
    4. Andrew Binning & Murat Özbilgin & Christie Smith, 2026. "An overlapping generations model to investigate the fiscal implications of New Zealand's ageing population," Treasury Working Paper Series wp26/01, New Zealand Treasury.
    5. Konysev, Vasilij & Fehrle, Daniel, 2025. "To converge or not to converge: Accounting for the German reunification," VfS Annual Conference 2025 (Cologne): Revival of Industrial Policy 325462, Verein für Socialpolitik / German Economic Association.
    6. Dany Bahar & Shreyas Gadgin Matha & Ricardo Hausmann & Santiago Segovia, 2026. "Japan’s Innovation Challenge: Escaping the Middle-Technology Trap," Growth Lab Working Papers 269, Harvard's Growth Lab.
    7. YiLi Chien & Wenxin Du & Hanno Lustig, 2025. "Japan’s Debt Puzzle: Sovereign Wealth Fund from Borrowed Money," Working Papers 2025-023, Federal Reserve Bank of St. Louis.
    8. Mori, Tomoya, 2026. "Demography in disguise: Comments on "Demographic challenges and economic stagnation in Japan" by Takeo Hoshi (2026)," MPRA Paper 128962, University Library of Munich, Germany.
    9. Leandro Prados de la Escosura, 2026. "Accounting for the Reversal of Fortune: Spain and Britain, 1501--1800," Working Papers 0302, European Historical Economics Society (EHES).
    10. Shirota, Toyoichiro & Tsuchida, Satoshi, 2025. "Aggregate implications of changing industrial trends in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 75(C).
    11. Abay, Kibrom A. & Wondale, Meseret & Korir, Josphat K. & Bachewe, Fantu Nisrane & Araya, Mesele & Breisinger, Clemens, 2025. "The landscape of youth engagement in labor markets in Africa: Are youth driving structural transformation?," IFPRI discussion papers 2382, International Food Policy Research Institute (IFPRI).
    12. Delalibera, Bruno R. & Pereira, Luciene & Rios, Heron & Serrano-Quintero, Rafael, 2024. "Capital misallocation and economic development in a dynamic open economy," Journal of Economic Dynamics and Control, Elsevier, vol. 168(C).
    13. Selahattin Imrohoroglu, 2025. "Aging, Population Projections, and Public Pensions," CIGS Working Paper Series 25-018E, The Canon Institute for Global Studies.
    14. Ryoji Ohdoi, 2025. "International asymmetries in population aging and their consequences for the technology gap and global growth," Discussion Paper Series 302, School of Economics, Kwansei Gakuin University.
    15. Ana Beatriz, 2025. "Effect of Central Bank Interest Rates on Economic Growth in Brazil," International Journal of Economic Policy, CARI Journals Limited, vol. 5(6), pages 52-60.

    More about this item

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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