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Ageing and productivity growth in OECD regions: Combatting the economic impact of ageing through productivity growth?

Author

Listed:
  • Federica Daniele
  • Taku Honiden
  • Alexander C. Lembcke

Abstract

OECD countries and their regions are ageing fast. In principle, the negative impact of ageing on the growth rate of per capita gross domestic product could be offset by increases in productivity. However, for many regions, productivity growth required to maintain per capita GDP levels constant has been higher than the actual growth rates they recorded in the past years. One reason for this is that ageing also has a direct negative impact on productivity growth, with the effect being concentrated in urban areas. One possible explanation is that cities specialise in sectors, such as tradable services, where the content of tasks makes it difficult to automate stages of the production process and where business dynamism, negatively affected by demographic change, is a more solid driver of productivity growth. Finally, ageing seems to be associated with a redistribution of revenues away from workers and towards capital and firm owners.

Suggested Citation

  • Federica Daniele & Taku Honiden & Alexander C. Lembcke, 2019. "Ageing and productivity growth in OECD regions: Combatting the economic impact of ageing through productivity growth?," OECD Regional Development Working Papers 2019/08, OECD Publishing.
    • Handle: RePEc:oec:govaab:2019/08-en
    DOI: 10.1787/9dcb3116-en
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    Cited by:

    1. Yingzhu Yang & Rong Zheng & Lexiang Zhao, 2021. "Population Aging, Health Investment and Economic Growth: Based on a Cross-Country Panel Data Analysis," IJERPH, MDPI, vol. 18(4), pages 1-16, February.
    2. Christine Lewis & Patrice Ollivaud, 2020. "Policies for Switzerland’s ageing society," OECD Economics Department Working Papers 1600, OECD Publishing.

    More about this item

    Keywords

    ageing; cities; productivity growth; regions;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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