Population Aging and Labor Income Share: Theoretical Mechanisms and Cross-Country Evidence

Abstract

Against the backdrop of intensifying global population aging and its increasingly prominent multi-faceted impacts on economic and social development, this paper comprehensively employs theoretical analysis and empirical research methods to conduct an in-depth investigation into the concept of labor income share and its influencing factors. Focusing on variables such as technological progress, labor market supply-demand dynamics, and human capital, it explores the relationship between population aging and labor income share. The research finds that population aging affects labor income share by altering labor market supply-demand relationships. Simultaneously, through technological progress and human capital accumulation, aging also exerts indirect influences on labor income share. Furthermore, due to differences in economic structures across countries and regions, the impact of population aging on labor income share demonstrates significant heterogeneity. These research outcomes provide important theoretical and practical references for addressing labor income distribution issues in the context of population aging.