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The Impact of Workforce Aging on European Productivity
Author:
Mr. Shekhar Aiyar
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Mr. Christian H Ebeke
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Series:
IMF Working Papers
Volume/Issue:
Volume 2016: Issue 238
Language:
English
Publication Date:
08 Dec 2016
DOI:
https://doi.org/10.5089/9781475559729.001
ISBN:
9781475559729
ISSN:
1018-5941
Pages:
29
Keywords:
WP; workforce; growth; Workforce Aging; Productivity; Policies; labor market; effect of workforce; workforce training; workforce skill; age group; aging workforce; workforce share; Aging; Total factor productivity; Labor force; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund