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Demographics and Productivity

The Review of Economics and Statistics 2007 89(1), 100-109
This paper examines the relationship between workforce demographics and aggregate productivity. Changes in the age structure of the workforce are found to be significantly correlated with changes in aggregate productivity. Different demographic structures may be related to almost one-quarter of the persistent productivity gap between the OECD and low-income nations as well as part of the productivity divergence between 1960 and 1990.