Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Work by Brown, Jackson, Ryan cited in brief for UT Supreme Court case on race-conscious college admissions

Thompson says criminal justice policies led to creation of prison gangs like Aryan Brotherhood

Schmitz finds job loss before retirement age contributes to weight gain, especially in men


Overview of Michigan's advanced research computing resources, Monday, June 27, 9-10:30 am, BSRB - Kahn Auditorium

U-M's Data Science Initiative offers expanded consulting services via CSCAR

Elizabeth Bruch promoted to Associate Professor

Susan Murphy elected to the National Academy of Sciences

Next Brown Bag

PSC Brown Bags
will resume fall 2016

David Lam photo

Population Growth, Age Structure, and Age-Specific Productivity

Publication Abstract

Lam, David. 1989. "Population Growth, Age Structure, and Age-Specific Productivity." Journal of Population Economics, 2: 189-210.

Motivated by empirical evidence that fluctuations in age structure affect relative wages across age groups, this paper asks whether there is a steady-state age distribution that maximizes the lifetime wages of a representative worker. The paper proves the surprising result that in a pure labor economy with any constant returns technology, a uniform age distribution minimizes lifetime wages. Skewed age distributions, generated by either positive or negative population growth rates, generate unambiguously higher lifetime wages than a stationary population, in spite of possible reductions in per capita output in every period. The presence of non-labor factors complicates, but does not necessarily reverse, this result. The paper relates the beneficial effects of higher rates of population growth on lifetime wages in the pure labor economy with imperfect substitutability across age groups to the benefits of population growth that appear in overlapping-generationn consumption loan models with intergenerational transfers.

Browse | Search : All Pubs | Next