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The demographics of structural change
1 : Groupe dÁnalyse des Itinéraires et des Niveaux Salariaux
Le Mans Université, Le Mans Université
We study the impact of population aging on the process of structural change, defined as the composition shift of aggregate consumption. In this aim, we develop a multi-goods overlapping generations model with endogenous human capital accumulation. The model produces life cycle profile for the expenditure share on services consistent with the hump-shaped pattern that we document from the Consumer Expenditure Survey. We then conduct counterfactual experiments on the demographic variables. They reveal that aging exerts several counteracting forces on the sectorial allocation of resources, while its total effect on the aggregate consumption share of services is positive.
