Working Paper #2017-043
Ageing, human capital and demographic dividends with endogenous growth, labour supply and foreign capital
We modify a Lucas-type endogenous growth model to contain endogenous
labour supply, imperfect international capital movements, and estimated
interest and education time functions. Solutions based on realistic
calibrations show that (i) the rate of human capital depreciation
through ageing has a much stronger negative impact on growth than
further changes in the population growth rate or the Frisch elasticity
of labour supply; (ii) a higher rate of human capital depreciation, a
higher growth rate of the dependency ratio, and lower past cumulated
savings all go together with a higher second-best education time and
higher growth; (iii) demographic dividends are positive in the short run
but negative in the long run.
- Keywords
-
- Ageing
- human capital
- endogenous growth
- open economy
- serendipity theorem
- JEL codes
-
- F43
- J11
- 24
- O11
- O33
- O41
Cite this as
APA 7th ed.Edle von Gaessler, A., & Ziesemer, T. (2017). Ageing, human capital and demographic dividends with endogenous growth, labour supply and foreign capital (UNU-MERIT Working Paper No. 2017-043). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=7355