Ageing in the labour market: a spatial VAR approach. Issue 4 (2nd October 2022)

• Record Type: Journal Article
• Authors: Giannini, Massimo; Fiorelli, Cristiana; Martini, Barbara
• Is Part Of: Spatial economic analysis. Volume 17:Issue 4(2022)
• Page Start: 538
• Page End: 556
• Publication Date: 2022-10-02
• Subjects: ageing -- spatial vector autoregressive -- overlapping generations (OLG) models -- labour market; C33 -- D15 -- H55 -- J11; Space in economics -- Periodicals; Economic geography -- Periodicals; Space in economics -- Econometric models -- Periodicals; Urbanization -- Periodicals; Espace (Économie politique) -- Périodiques; Économétrie -- Périodiques; Géographie économique -- Périodiques; Économie industrielle -- Périodiques; Économie du travail -- Périodiques; Économie urbaine -- Périodiques; Politique économique -- Périodiques; Relations économiques internationales -- Périodiques; 330.9
• DOI: 10.1080/17421772.2022.2036361
• Languages: English
• ISSNs: 1742-1772

Abstract

ABSTRACT: This study examines the effects of ageing on per capita labour income, consumption and wealth of the working population in Italian provinces. Starting from the overlapping generations (OLG) model of perpetual youth, we estimate a spatial vector autoregressive (VAR) model to investigate how ageing affects the model's dynamics. We find that ageing positively impacts per capita labour income and wealth, consequently having an adverse effect on consumption (over-accumulation). A simple exercise shows that over-accumulation is beneficial to the Italian social security system.