The Wealth of Working Nations
Working Paper 31914
DOI 10.3386/w31914
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GDP growth per capita and GDP growth per working-age adult have become quite different in advanced economies. Countries with lackluster GDP growth per capita, such as Japan, have performed well in working-age adult terms. Furthermore, many advanced economies are on parallel growth trajectories in working-age adult terms despite differences in levels. We calibrate a standard growth model in which the growth of the working-age adult population varies in line with the data. The calibrated model tracks output per working-age adult in most cases. We conclude that the growth of mature, aging economies is not puzzling from a theoretical perspective.