Age Structure Effects and Growth in the OECD, 1950-90: Further Evidence

Economic growth depends on human resources and human needs. The demographic age structure shapes both of these factors. We study five-year data from the OECD countries 1950-90 in the framework of a human capital augmented neoclassical growth model with gradual technical adjustment due to technology barriers. The growth patterns of GDP per worker (labor productivity) in the OECD countries are to a large extent explained by age structure changes. The 50-64 age group has a positive influence, and the group above 65 contributes negatively, while younger age groups have ambiguous effects. This paper shows that previously reported regression results are robust to a wide variety of sensitivity test: inclusion of educational and other control variables; time window definitions; age group definitions; outliers and heteroskedasticity corrections, etc.