Is Ageing a Drag on Productivity Growth? A Review Article on "Ageing, Health and Productivity: The Economics of Increased Life Expectancy"

• Main Author: Andrew Sharpe
• Format: Article
• Language: English
• Published: Centre for the Study of Living Standards 2011-04-01
• Series: International Productivity Monitor
• Subjects: review; productivity; aging; effects of aging; pension
• Online Access: http://www.csls.ca/ipm/21/IPM-21-Sharpe.pdf

This review article discusses the volume Ageing, Health and Productivity: The Economics of Increased Life Expectancy, which provides a detailed examination of the relationship between ageing and productivity. While the authors find some evidence of a negative effect of ageing on productivity, they conclude that at the aggregate level the effect is small. The review argues that this finding provides support for efforts to boost the employment rate of older persons, especially those aged 55-69, both to benefit these persons themselves and to increase tax revenues to cover the rising health and pension costs of the growing senior population.