A study published by the National Bureau of Economic Research examining data across the past seven decades established no statistically significant decrease in total economic output resulting from lower birth rates. Researchers observed that periods of reduced birth rates were instead characterized by accelerated wage growth and elevated output per working-age adult.
The findings indicate that the macroeconomic drag expected from a diminishing labor force was neutralized by key productivity drivers. Specifically, higher levels of capital investment alongside labor-saving technology offset part of the direct impact associated with having a smaller active workforce.
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