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

PSC In The News

RSS Feed icon

Frey comments on why sunbelt metro area economies are still struggling

Krause says having religious friends leads to gratitude, which is associated with better health

Work by Bailey and Dynarski on growing income gap in graduation rates cited in NYT

Highlights

Martha Bailey and Nicolas Duquette win Cole Prize for article on War on Poverty

Michigan's graduate sociology program tied for 4th with Stanford in USN&WR rankings

Jeff Morenoff makes Reuters' Highly Cited Researchers list for 2014

Susan Murphy named Distinguished University Professor

Next Brown Bag

Monday, Sep 22
Paula Fomby (Michigan), Family Complexity, Siblings, and Children's Aggressive Behavior at School Entry

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