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The age structure change of population and labour productivity impact

Author

Listed:
  • Olfa Frini

    (ISCAE Manouba University Tunisia; ECSTRA Carthage University Tunisia)

  • Khoutem Ben Jedidia

    (ISCAE Manouba University)

Abstract

Paper explores population ageing macroeconomic effects on labour market productivity. It examines the effect of labour force participation rate by age ranges: young adulthood (15-29 years), prime age (30-49), and old age (50-64) on the aggregate labour productivity. Using Tunisian data during 1965-2014, a cointegration long-run relationship with a progressively adjustment process towards equilibrium is found. Age-productivity profile does not follow an inverted U shape. Labour productivity edges down for young worker and keeps the rise for older. Ageing seems did not lead a low performance for the Tunisian labour market. The retirement age delay beyond 60 years-old is advised to gain more in productivity and enhance economic growth.

Suggested Citation

  • Olfa Frini & Khoutem Ben Jedidia, 2018. "The age structure change of population and labour productivity impact," Economics Bulletin, AccessEcon, vol. 38(4), pages 1831-1844.
    • Handle: RePEc:ebl:ecbull:eb-18-00102
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Ageing; Labour force participation rate; Age structure; Labour productivity; Error correction model; Tunisia;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J8 - Labor and Demographic Economics - - Labor Standards

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