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Population Aging and Human Capital: Evidence From Countries With Different Income Levels
Abstract
This study investigates the effect of the changes in the demographic structure of countries with different income levels on human capital. The world population is getting increasingly older. So, what are the consequences of population aging increasing further? To answer this question, the author constructed the econometric equation as a polynomial equation. The result of the study is that population aging is a highly important issue in terms of the economy due to its causes and effects. While population aging creates disadvantageous in underdeveloped or developing countries, it creates an advantage in terms of human capital stock in developed economies. The effect of the increase in population aging on human capital is U-shaped in low-income countries and inverted U-shaped in middle and high-income countries.
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