Age Structure and Regional Income Growth

A spatial econometrics cross-section analysis of the NUTS2 regions of the EU15 is carried out to examine whether the age structure of the regional population or differences in the regional age pattern affect growth of regional per capita income. We apply two parsimonious models of the age structure and both provide evidence that there is such a link and that spatial autocorrelation occurs. The most significant growth effect is generated by the age groups which are about the age of 30. After correcting for country specific effects, the evidence is slightly weaker.