Aging Labor, ICT Capital, and Productivity in Japan and Korea

56 Pages Posted: 15 Jan 2020

See all articles by Jong-Wha Lee

Jong-Wha Lee

Korea University

Do Won Kwak

Korea University

Eunbi Song

Korea University

Date Written: January 14, 2020

Abstract

This study examines how aging affects labor productivity using industry-level data of Japan and Korea. The analysis shows that, for both Japan and Korea, aging has positive effects on labor productivity when older workers are working in industries with a large share of information and communication technology (ICT) in the capital stock. We also find that, on average, older workers exert positive effects on labor productivity across all industries when they are low-educated in Japan and high-educated in Korea. In addition, a complementary effect between ICT capital and older workers is observed for both high- and low-educated workers in Japan but only for low-educated workers in Korea. We discuss the interplay among educational attainment, industry characteristics, and production techniques to explain the differences between the two countries in the productivity of their older workers.

Keywords: aging, ICT capital, productivity, Japan, Korea

JEL Classification: J11, J14, O41, O47, O53

Suggested Citation

Lee, Jong-Wha and Kwak, Do Won and Song, Eunbi, Aging Labor, ICT Capital, and Productivity in Japan and Korea (January 14, 2020). CAMA Working Paper No. 1/2020, Available at SSRN: https://ssrn.com/abstract=3518875 or http://dx.doi.org/10.2139/ssrn.3518875

Jong-Wha Lee (Contact Author)

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

Do Won Kwak

Korea University ( email )

145 Anam-ro, Sungbuk-gu
Division of International Studies
Seoul, Seoul 02841
Korea, Republic of (South Korea)

Eunbi Song

Korea University ( email )

1 Anam-dong 5 ka
Seoul, 136-701
Korea, Republic of (South Korea)

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