The Impact of Generation Mix in the Labor Market on Country Economies: The Case of G20 Countries

Demographic change is a critical factor affecting countries' economic and socio-cultural structure. The change between generations deeply affects economic systems and shapes production capacity. This research examines the impact of the generational transition in the youth labor market on total factor productivity (TFP) in G20 countries. Between 1980 and 2019, the labor force participation rates and TFP data of young people aged 15-24 were evaluated with a panel regression model. The findings reveal the impact of this transition between generations on economic systems; they emphasize the role of different generations in economic dynamics. This study aims to contribute to the literature and guide the policy-making processes of G20 countries. It is expected to shed light on future policy developments by emphasizing the importance of intergenerational interaction in the labor market on the economic performance of countries.