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A Potential Dividend from Workforce Ageing in Australia

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  • Guest, R

Abstract

"This study explores by simulation analysis the extent of a potential dividend from workforce ageing in Australia. The analysis suggests that the optimum workforce is older than the actual workforce today. Hence, workforce ageing implies that the actual age distribution of the workforce can be expected to shift closer to the optimum age distribution, generating a dividend in terms of aggregate labour productivity. Simulations suggest that the dividend is likely to be non-trivial in magnitude, although the size of the effect depends very much on the values of elasticities of substitution about which little is known. Nevertheless, plausible scenarios can be constructed in which the dividend is sufficient to offset significantly the costs of projected declines in the worker to population ratio."

Suggested Citation

  • Guest, R, 2005. "A Potential Dividend from Workforce Ageing in Australia," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 31(2), pages 135-154.
    • Handle: RePEc:fli:journl:27704
    Note: Guest, R., 2005. A Potential Dividend from Workforce Ageing in Australia. Australian Bulletin of Labour, Vol. 31 No. 2, pp. 135-154
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    File URL: http://hdl.handle.net/2328/27704
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    Cited by:

    1. John Creedy & Jamas Enright & Norman Gemmell & Angela Mellish, 2010. "Population ageing and taxation in New Zealand," New Zealand Economic Papers, Taylor & Francis Journals, vol. 44(2), pages 137-158.
    2. Ross Guest & Heather Stewart, 2011. "The age dispersion of workers and firm productivity: a survey approach," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(1), pages 59-75.

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