Demographic Change and Economic Growth



In this chapter we discuss the relationship between changes in a country’s age structure and its economic growth and productivity. We summarize the recent literature on the impact of a country’s age structure on economic growth and relate the results to our own empirical findings. Our results indicate a positive impact of the age group 50–64 on economic growth. Moreover, a high proportion of people in the age group 15–29 facilitate technology absorption. The use of matched employer–employee data sets allows us to estimate age-productivity profiles at the firm level. Considering all firms in the data set reveals a negative productivity effect of the share of older workers (50+). Considering only large firms reveals no impact of the age structure in the mining and manufacturing industries and a negative impact of the share of younger workers for the non-manufacturing sector.


Demographic Transition Support Ratio Dependency Ratio Demographic Structure Demographic Dividend 
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© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  1. 1.Vienna Institute of DemographyAustrian Academy of SciencesViennaAustria
  2. 2.Institute for Industrial ResearchVienna University of Economics and Business AdministrationAustria
  3. 3.Institute for European AffairsVienna University of Economics and Business AdministrationAustria
  4. 4.Institute for Mathematical Methods in Economics (Research Unit Economics)Vienna University of TechnologyAustria

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