The Impact of Demographics on Productivity and Inflation in Japan
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Is Japan’s aging and, more recently, declining population hampering growth and reflation efforts? Exploiting demographic and economic variation in prefectural data between 1990 and 2007, we find that aging of the working age population has had a significant negative impact on total factor productivity. Moreover, prefectures that aged at a faster pace experienced lower overall inflation, while prefectures with higher population growth experienced higher inflation. The results give strong support to the notion that demographic headwinds can have a non-trivial impact on total factor productivity and deflationary pressures.
Series:
Working Paper No. 2016/237
Subject:
Aging Inflation Labor Labor force participation Population and demographics Population growth Prices Production Total factor productivity
English
Publication Date:
December 8, 2016
ISBN/ISSN:
9781475559712/1018-5941
Stock No:
WPIEA2016237
Pages:
18
Please address any questions about this title to publications@imf.org