"Is aging in the regional labor market wiping out localized external economies? Evidence from European manufacturing firms"

Authors:
Filippo Berti Meccoci, DISEI Università degli Studi di Firenze
Amir Maghssudipour, dSEA Unipd

While technological adaptation mitigates productivity concerns, aging influences labor mobility, knowledge spillovers, and entrepreneurship. Using European manufacturing firm data and an instrumental variable approach, the authors find that while the impact of aging on productivity is positive, the effects of localized external economies are positive for younger regions and negative for older ones with critical workforce aging thresholds at 19.68% (specialization economies) and 24.28% (urbanization economies).

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