The relationship of labor productivity with demographic structure and human capital: Panel data applications

Labor productivity is an important variable in the development and growth of countries. Developed countries attach importance to productivity increases both to remain their price stability and to sustain their growth while developing countries remain their growth and development through increases in labor productivity. This thesis has been mentioned the variables that are thought to affect labor productivity the effect of demographic structure, and human capital on labor productivity. The effect of demographic structure and human capital on labor productivity has been analyzed for 115 countries, BRICS-T countries and Turkey using the panel fixed effect, random effect, Arellano-Bond and interactive model during the period 1991-2018. According to the analysis results; It has been determined that increasing the age dependency ratio will decrease the growth of labor productivity. Besides, the marginal effect of other determinants of labor productivity also was found a seriously adverse impact on labor productivity. It is found that while age dependency is negatively impacted labor productivity, human capital affects it positively. Also following the empirical results; the marginal effects of the human capital variable that correlated with the other determinants of labor productivity variable are positive KEYWORDS: Labor Productivity, Demographic Structure, Human Capital