The Impact of Generational Differences on Economic Growth: Examples from Eurasian Countries

Changes in the population structure shape the sociocultural system and the countries’ economies. Studies show that population growth and demographic changes significantly impact the economic development of nations. However, labor productivity is also an important factor affecting economic growth. Labor productivity refers to the increase in productivity resulting from the efforts and skills of employees and their interactions with other employees. At this point, generational transitions in the labor market stand out within the scope of labor productivity. Considering the technological change in the past three decades, the competencies and skills of the labor market have changed significantly with the emergence of generational differences among individuals involved in the workforce. It is also emphasized by many studies that there are various skill differences, such as technology aptitude, between generations born in the technological development process (digital natives) and generations born before the said process (digital immigrants). In this context, the study aims to investigate the effect of generational changes in the labor market of Eurasian countries on their economic growth. Using the labor force participation rate and economic growth data for 1989 and 2021, the effect of the transition between generations on economic growth was analyzed using unbalanced panel data analysis. According to the findings on economic development, while a statistically significant and positive effect of the ages within the scope of 2006-2012 and 2013-2021 was determined, no significant impact was found for the generations within the range of 1996-2005.