Age structure effects and growth in the OECD, 1950-1990

Economic growth depends on human resources and human needs. The demographic age structure shapes both of these factors. We study five-year data from t he OECD countries 1950-1990 in the framework of an age structure augmented neoclassical growth model with gradual technical adjustment. The model perf orms well in both pooled and panel estimations. The growth patterns of GDP per worker (labor productivity) in the OECD countries are to a large extent explained by age structure changes. The 50-64 age group has a positive inf luence, and the group above 65 contributes negatively, while younger age gr oups have ambiguous effects. However, the mechanism behind these age effect s is not yet resolved. JEL classification: J11, O40, O57.