Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities

A large literature documents the positive influence of a city's skill structure on its rate of economic growth. By contrast, the effect of a city's age structure on its economic growth has been a hitherto largely neglected area of researc...

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Main Authors: Jedwab, Remi, Pereira, Daniel, Roberts, Mark
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/836441571143681111/Cities-of-Workers-Children-or-Seniors-Age-Structure-and-Economic-Growth-in-a-Global-Cross-Section-of-Cities
http://hdl.handle.net/10986/32585
id okr-10986-32585
recordtype oai_dc
spelling okr-10986-325852022-09-05T00:21:25Z Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities Jedwab, Remi Pereira, Daniel Roberts, Mark URBANIZATION DEMOGRAPHICS AGGLOMERATION EFFECT HUMAN CAPITAL AGING DEPENDENCY RATIO AGE STRUCTURE A large literature documents the positive influence of a city's skill structure on its rate of economic growth. By contrast, the effect of a city's age structure on its economic growth has been a hitherto largely neglected area of research. This paper hypothesizes that cities with more working-age adults are likely to grow faster than cities with more children or seniors. The paper sets out the potential channels through which such differential growth may occur. Using data from a variety of historical and contemporary sources, it shows that there exists marked variation in the age structure of the world's largest cities, across cities and over time. It then studies how age structure affects economic growth for a global cross-section of mega-cities. Using various identification strategies, the analysis finds that mega-cities with higher dependency ratios, that is, with more children and/or seniors per working-age adult, grow significantly slower. Such effects are particularly pronounced for cities with high shares of children. This result appears to be driven mainly by the direct, negative effects of a higher dependency ratio on the size of the working-age population and the indirect effects on work hours and productivity for working-age adults within a city. 2019-10-18T19:09:45Z 2019-10-18T19:09:45Z 2019-10 Working Paper http://documents.worldbank.org/curated/en/836441571143681111/Cities-of-Workers-Children-or-Seniors-Age-Structure-and-Economic-Growth-in-a-Global-Cross-Section-of-Cities http://hdl.handle.net/10986/32585 English Policy Research Working Paper;No. 9040 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic URBANIZATION
DEMOGRAPHICS
AGGLOMERATION EFFECT
HUMAN CAPITAL
AGING
DEPENDENCY RATIO
AGE STRUCTURE
spellingShingle URBANIZATION
DEMOGRAPHICS
AGGLOMERATION EFFECT
HUMAN CAPITAL
AGING
DEPENDENCY RATIO
AGE STRUCTURE
Jedwab, Remi
Pereira, Daniel
Roberts, Mark
Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities
relation Policy Research Working Paper;No. 9040
description A large literature documents the positive influence of a city's skill structure on its rate of economic growth. By contrast, the effect of a city's age structure on its economic growth has been a hitherto largely neglected area of research. This paper hypothesizes that cities with more working-age adults are likely to grow faster than cities with more children or seniors. The paper sets out the potential channels through which such differential growth may occur. Using data from a variety of historical and contemporary sources, it shows that there exists marked variation in the age structure of the world's largest cities, across cities and over time. It then studies how age structure affects economic growth for a global cross-section of mega-cities. Using various identification strategies, the analysis finds that mega-cities with higher dependency ratios, that is, with more children and/or seniors per working-age adult, grow significantly slower. Such effects are particularly pronounced for cities with high shares of children. This result appears to be driven mainly by the direct, negative effects of a higher dependency ratio on the size of the working-age population and the indirect effects on work hours and productivity for working-age adults within a city.
format Working Paper
author Jedwab, Remi
Pereira, Daniel
Roberts, Mark
author_facet Jedwab, Remi
Pereira, Daniel
Roberts, Mark
author_sort Jedwab, Remi
title Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities
title_short Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities
title_full Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities
title_fullStr Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities
title_full_unstemmed Cities of Workers, Children, or Seniors? Age Structure and Economic Growth in a Global Cross-Section of Cities
title_sort cities of workers, children, or seniors? age structure and economic growth in a global cross-section of cities
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/836441571143681111/Cities-of-Workers-Children-or-Seniors-Age-Structure-and-Economic-Growth-in-a-Global-Cross-Section-of-Cities
http://hdl.handle.net/10986/32585
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