Technological Progress and Wage Share of Old Workers

Abstract

Technological progress may be less beneficial for older workers than younger workers. In this paper, we empirically examine the relationship between technological change and the wage share of old workers. More specifically, we look at five different types of technological advancement using data from 30 European and Asian countries at the forefront of global population aging. Our findings indicate that recent technological developments centered on information and communication technology, software, and robots do not adversely affect old workers. One possible explanation is that old workers may be more open to and capable of learning new technologies than widely presumed.