Demographic Shifts Unlock Unprecedented Human Capital Gains, Boosting Long-Term Growth
The study looked at how changes in population affect the economy by focusing on education. They found that when people adjust their education levels based on population changes, it helps lessen the negative impact on the economy. Newborns benefit more when education is adjusted, especially those with lower abilities. By improving education, the economy can grow faster in the long run by 0.2-0.4 percentage points.