The Impact of Workforce Aging on European Productivity

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 wha...

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Bibliographic Details
Main Author: Aiyar, Shekhar
Other Authors: Ebeke, Christian
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2016
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Spain 
653 |a Population & demography 
653 |a Economics of the Handicapped 
653 |a Research and Development 
653 |a Labour 
653 |a Cross-Country Output Convergence 
653 |a Intellectual Property Rights: General 
653 |a Non-labor Market Discrimination 
653 |a Demographic Economics: General 
653 |a Productivity 
653 |a Aggregate Productivity 
653 |a Cost 
653 |a Capital and Total Factor Productivity 
653 |a Production 
653 |a Industrial productivity 
653 |a Economics of the Elderly 
653 |a Aging 
653 |a Total factor productivity 
653 |a Population aging 
653 |a Labor 
653 |a Population and demographics 
653 |a Labor Force and Employment, Size, and Structure 
653 |a Macroeconomics: Production 
653 |a Labor force 
653 |a Demography 
653 |a Innovation 
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653 |a Macroeconomics 
653 |a Measurement of Economic Growth 
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520 |a 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 by an average of 0.2 percentage points every year over the next two decades. A variety of policies could ameliorate this effect