Since 2014
Workforce Ageing and Labour Productivity Dynamics
Journal of Contemporary Issues in Economics and Business
View Archive Info| Field | Value | |
| Title |
Workforce Ageing and Labour Productivity Dynamics
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| Creator |
Milanez, Ana; Ministry of Finance of the Republic of Slovenia
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| Subject |
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labour productivity, demographics, neoclassical production function, panel data |
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| Description |
This paper adopts a neoclassical framework to study the effect of age compositionof the working-age population on labour productivity and its determinants,based on an unbalanced panel of 64 non-oil-producing countries, over the period1950-2017. Our first contribution comes from testing whether a shock in agestructure has the ability to permanently shift labour productivity dynamics. Frommethodological standpoint, we try to reduce the risk of model mispecification inthe existing literature, that has often overlooked the possibility of cross-sectionaldependence in the data and heterogeneity in slope coefficients. We also note theimportance of time series properties of the data for valid statistical inference.Our results indicate, that ageing of the working-age population depresses labourproductivity growth; negative impact of individuals aged between 55 and 64on total factor productivity growth is only partially offset by its positive impacton human and physical capital accumulation. For sustaining the current levelof living standards, adoption of policies, which forestall the negative impact ofolder workers on innovation process and promote their positive impact on thesupply of production factors, is of crucial importance. We do not find evidence,that higher public spending on education in% of GDP has such an effect.
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| Publisher |
Faculty of Economics and Business
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| Contributor |
—
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| Date |
2020-09-15
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://ng-epf.si/index.php/ngoe/article/view/238
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| Source |
Naše gospodarstvo/Our economy; Vol 66, No 3 (2020); 1-13
2385-8052 0547-3101 |
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| Language |
eng
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| Relation |
http://ng-epf.si/index.php/ngoe/article/view/238/209
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| Rights |
Copyright (c) 2020 Naše gospodarstvo/Our economy
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