2016
DOI: 10.5089/9781475559729.001
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The Impact of Workforce Aging on European Productivity

Abstract: The age-distribution of Europe's workforce has shifted towards older workers over the past few decades, a process expected to accelerate in the years ahead.. This paper studies the effect of the aging of the workforce on labor productivity, identifies the main transmission channels, and examines what policies might mitigate the effects of aging. We find that workforce aging reduces growth in labor productivity, mainly through its negative effect on TFP growth. Projected workforce aging could reduce TFP growth … Show more

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Cited by 157 publications
(148 citation statements)
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“…If different cohorts have different levels of productivity, it is likely that age structure may affect economic development paths. At this point, the literature stresses that a worker's productivity systematically varies over her working life for reasons such as the accumulation of experience over time, depreciation of knowledge, and age‐related trends in physical and mental capabilities (Aiyar, Ebeke, & Shao, ). In this regard, a more mature labour force may have higher average levels of work experience, with potentially positive effects on productivity (Burtless, ; Disney, ).…”
Section: Econometric Approachmentioning
confidence: 99%
“…If different cohorts have different levels of productivity, it is likely that age structure may affect economic development paths. At this point, the literature stresses that a worker's productivity systematically varies over her working life for reasons such as the accumulation of experience over time, depreciation of knowledge, and age‐related trends in physical and mental capabilities (Aiyar, Ebeke, & Shao, ). In this regard, a more mature labour force may have higher average levels of work experience, with potentially positive effects on productivity (Burtless, ; Disney, ).…”
Section: Econometric Approachmentioning
confidence: 99%
“…The workforce in all developed countries is ageing. A special study was devoted to this issue: Aiyar et al, 2016, from which we borrowed Table 1 below, adding Russia (the low end of the working age is defined differently in the Table 1 than in Fig. 10).…”
Section: Ageing Of Workforcementioning
confidence: 99%
“…Desde una perspectiva estrictamente económica y considerando a cada individuo como un agente productivo, una población numerosa puede ser beneficiosa para el fortalecimiento de la economía de una nación (Kremer 1993;Easterly 2001;Aiyar, Ebeke y Shao 2016). Pero esto solo es posible si las estructuras sociales, culturales y económicas permiten al individuo desarrollar el máximo de sus capacidades (Easterly 2006).…”
Section: Introductionunclassified