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Regional age structure and economic growth: an econometric study for German regions

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  • Brunow, Stephan
  • Hirte, Georg

Abstract

This paper analyses the impact of the regional age structure on growth of German regions. Based on a neoclassical growth model an augmented Solow model was derived and estimated in a spatial econometric approach. Besides labor and human capital, public spendings and urbanisation measures are controlled for. Adding the age structure of the employed labor force, which we use as proxy for the age pattern of human capital, improves the regression model significantly. Spatial autocorrelation is controlled for and supports OLS results. To get deeper insights in the effectiveness of the age structure quantile regression techniques are applied to distinguish the effects between various levels of growth rates. The results of the different estimation approaches provide evidence that the age structure matters for growth.

Suggested Citation

  • Brunow, Stephan & Hirte, Georg, 2009. "Regional age structure and economic growth: an econometric study for German regions," Dresden Discussion Paper Series in Economics 04/09, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    • Handle: RePEc:zbw:tuddps:0409
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    References listed on IDEAS

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    Cited by:

    1. Paula Prenzel & Simona Iammarino, 2018. "Ageing labour: How does demographic change affect regional human capital?," Papers in Evolutionary Economic Geography (PEEG) 1832, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2018.

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    More about this item

    Keywords

    age structure; growth; public spending;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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