It is not older workers’ falling productivity that seems to hold back the economy, but their influence on those around them
first time in history, the Earth has more people over the age of 65 than under the age of five. In another two decades the ratio will be two-to-one, according to a recent analysis by Torsten Sløk of Deutsche Bank. The trend has economists worried about everything from soaring pension costs to “secular stagnation”—the chronically weak growth that comes from having too few investment opportunities to absorb available savings. The world’s greying is inevitable.
Furthermore, if weak productivity growth was caused by older workers producing less, pay patterns should reflect that. Wages would tend to rise at the beginning of a career and fall towards its end. But that is not what usually happens. Rather, according to a recent paper by economists at Moody’s Analytics, a consultancy, wages are lower for everyone in companies with lots of older workers. .
If the evidence suggested that ageing economies struggled primarily because of slow-growing labour forces and fast-growing pension costs, it would make sense to focus policy efforts on keeping people in work longer—by raising retirement ages, for example. But if, as seems to be the case, reticence to embrace new technologies is a bigger issue, other goals should take priority—in particular, boosting competition.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tiffany May Be Slower to Recover From Chinese FluJewelry seller Tiffany & Co. is overdependent on Chinese luxury shoppers, who have pulled back and might not be as quick to open their wallets as after past downturns.
Read more »
Slower growth in ageing economies is not inevitableBut avoiding it means tough policy choices
Read more »
U.S. economy grew a slower 2.2% in the fourth quarter, revised GDP figures showThe economy grew somewhat slower in the final three months of 2018 than it originally appeared, largely because of softer consumer spending and a weaker climate for business investment that’s likely to depress growth in the first quarter as well. The government cut fourth-quarter GDP growth to 2.2% from 2.6%.
Read more »
AT&T's controversial '5G E' network is actually slower than existing LTE networks operated by Verizon and T-Mobile, according to tests in a new reportAT&T's has been mired in controversy over its '5G E' network that some say make people thing AT&T customers have access to the new 5G network.
Read more »
Fourth-quarter GDP growth revised lowerThe economy grew somewhat slower in the final three months of 2018 than it originally appeared, largely because of softer consumer spending and a weaker...
Read more »
Slower growth in ageing economies is not inevitableBut avoiding it means tough policy choices
Read more »
U.S. economy grew a slower 2.2% in the fourth quarter, revised GDP figures showThe economy grew somewhat slower in the final three months of 2018 than it originally appeared, largely because of softer consumer spending and a weaker climate for business investment that’s likely to depress growth in the first quarter as well. The government cut fourth-quarter GDP growth to 2.2% from 2.6%.
Read more »
Race is on for Southeast Asia 'super app' amid internet economy growth expectationsThe race is on for a 'super app' for Southeast Asia as mobile-based e-commerce makes inroads in the region, experts say.
Read more »