The Impact of Population Ageing on the Labour Market: Evidence from Overlapping Generations Computable General Equilibrium (OLG-CGE) Model of Scotland

Katerina Lisenkova, Marcel Merette, Robert Wright

Research output: Working paperDiscussion paper

93 Downloads (Pure)

Abstract

This paper presents a dynamic Overlapping Generations Computable General Equilibrium (OLG-CGE) model of Scotland. The model is used to examine the impact of population ageing on the labour market. More specifically, it is used to evaluate the effects of labour force decline and labour force ageing on key macro-economic variables. The second effect is assumed to operate through age-specific productivity and labour force participation. In the analysis, particular attention is paid to how population ageing impinges on the government expenditure constraint. The basic structure of the model follows in the Auerbach and Kotlikoff tradition. However, the model takes into consideration directly age-specific mortality. This is analogous to “building in” a cohort-component population projection structure to the model, which allows more complex and more realistic demographic scenarios to be considered.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Number of pages23
Publication statusPublished - Sep 2012

Publication series

NameStrathclyde Discussion Papers in Economics
PublisherUniversity of Strathclyde
No.12-13

Keywords

  • scotland
  • CGE modelling
  • population ageing
  • labour market
  • evidence
  • overlapping generations computable general equilibrium
  • model of scotland
  • olg-cge

Fingerprint Dive into the research topics of 'The Impact of Population Ageing on the Labour Market: Evidence from Overlapping Generations Computable General Equilibrium (OLG-CGE) Model of Scotland'. Together they form a unique fingerprint.

  • Cite this

    Lisenkova, K., Merette, M., & Wright, R. (2012). The Impact of Population Ageing on the Labour Market: Evidence from Overlapping Generations Computable General Equilibrium (OLG-CGE) Model of Scotland. (Strathclyde Discussion Papers in Economics; No. 12-13). University of Strathclyde.