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http://dx.doi.org/10.14400/JDC.2019.17.11.001

The impact of Workforce Aging on Labor Productivity: Using the Regional Panel Dataset in Korea  

Jung, Yonghun (Division of Economics and Statistics, Korea University)
Lee, Seong-Hoon (Division of Economics and Statistics, Korea University)
Publication Information
Journal of Digital Convergence / v.17, no.11, 2019 , pp. 1-7 More about this Journal
Abstract
This study analyzed the effects of labor aging on labor productivity using panel statistics of 16 local governments from 1995 to 2017. The aging of the labor force, defined as the proportion of workers aged 60 or older in total employment, in the results of the panel regression analysis considering regional fixed effects and various adjustment variables, has a very consistent and significant negative effect on labor productivity. For every 1% increase in aging, labor productivity decreases by about 0.14 ~ 0.20%. In addition, the per capita capital stock and human capital considered as adjustment variables contributed to the increase of labor productivity, and the unemployment rate, which is a proxy variable of the economic fluctuation, has a significant negative effect on labor productivity as expected. The coefficient of the industrial structure, which represents the share of the service industry in the whole industry, was positive, but is not significant. The results of this study suggest that the design and construction of economic and educational policies that can maintain and expand human capital are necessary to curb the reduction in labor productivity expected by the aging workforce.
Keywords
Labor ageing; Labor productivity; Regional economy; Capital; Panel analysis;
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Times Cited By KSCI : 6  (Citation Analysis)
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