Population Ageing, Productivity and Technological Change in Asia

Abstract:Demographic and technological changes are two megatrends set to transform labour markets around the world. These shifts are already under way and are expected to accelerate, particularly in East and Southeast Asia, which is home to the world's oldest and fastest-ageing societies and a region with an enviable pace of economic development. Yet for some countries, demographic ageing is coinciding with a slowdown in productivity and economic growth. While each of these phenomena has been extensively researched, the study of the interactions between them is often incidental and rarely carried out in the Asian setting. This article explores the plausible channels of these interactions and assembles evidence of links between age and productivity at the individual, firm and country levels, drawn from both Asian and global settings. Findings have shown that there are many knowledge gaps, both in data and modelling, which need to be addressed to inform the major policy interventions required to successfully manage these transitions.