WORKFORCE HEALTH AND ECONOMIC GROWTH: EXPLORING THE DYNAMICS IN MORE THAN HALF A CENTURY

Abstract

This study contributes to understanding the role of workforce health on output growth and convergence process in 38 high-income OECD and 58 low-income countries over a 65-year period. Empirical findings based on system GMM estimations show that (i) year gains in longevity of the younger workforce at ages from 15 to 20 have significant effects on economic growth, (ii) after age 20, the rate of convergence slightly decreases with rising age, (iii) the risk of adult mortality adversely affects output growth through the loss of human capital in productive ages and the decreases in the incentives to invest in physical capital, and (iv) the positive effects of the savings rates on growth considerably rise with rising age in OECD countries but not in low-income countries. The findings of the study provide valuable insights into the critical role that policy can play in promoting workforce health, ultimately productivity, and long-run economic growth.