AGEING OF LABOUR FORCE AND PRODUCTIVITY GROWTH IN THE CZECH REPUBLIC

Ageing of population belongs to important non-economic factors affecting not only the labour market but also economic performance. Ageing brings a threat of insufficient supply of new young workers to the labour market as well as a slowdown of economic growth. Population ageing influences different areas of national economy. Total factor productivity measurement represents one of possible methods to be used for these purposes. The paper focuses on estimating the impact of the workforce over 55 years on the economy of the Czech Republic. With respect to available data sources, we used a total productivity model. The key issue lies in the influence of the age composition of the workforce on real output. The increase of productivity is considered as an important factor of future economic growth. The relationship between labour productivity and age structure is presented on the level of industries of the Czech economy. The paper also discusses both the pros and cons of ageing of the workforce.