In this paper, we addressed the important question of how selected areas of life will be affected as populations grow older and smaller. We used the case of Germany, a country that is at a relatively advanced stage of the demographic transition, to study the potential long-run implications of population aging. In the decades prior to 2040, the consequences of population aging are expected to be largely negative, as the baby boomers reach retirement age and dependency ratios and expenditures for pensions and health care increase. Still, we found evidence that after a period of transition, population aging could have effects that are positive, at least in part.
We have shown the potential effects of having an older and smaller population, such as lower carbon emission levels due to changes in aggregate consumption patterns. Having a higher share of the population with tertiary education could be beneficial for economic growth in the long run, and could compensate, at least in part, for absolute and relative declines in the number of economically active persons. Inherited wealth will have to be split among a smaller number of siblings, which could compensate for an increase in upward public transfers, via pay-as-you-go pension system. Furthermore, individuals are expected to spend longer shares of their lives in good health and engage in leisure activities.
Chosen excerpts by Job Market Monitor. Read the whole story at The Advantages of Demographic Change after the Wave: Fewer and Older, but Healthier, Greener, and More Productive?
Complaints about the graying of the population sometimes imply an inevitable loss of economic dynamism. But I know of no historical evidence that either the productivity or the creativity of a society is determined by the age structure of its population. The interaction between demographic and economic change is so much more complex than the … Continue reading
To address the effects of population ageing, the EU will need to close the gender gap and increase the participation of young and older workers in the labour market, but mobility and migration also have a key role to play. This is the main finding of the joint Commission-OECD report on Matching Economic Migration with … Continue reading
Historically low birth rates and increasing life expectancy mean that Europe’s working population is ageing fast. In 2012, the continent reached an inevitable demographic tipping point. The percentage of the population at working age fell for the first time in 40 years. It is now forecast to fall every year until 2060. This inescapable trend … Continue reading
South Korea is ageing faster than any other country in the OECD. Last year almost 12% of the population were aged 65 or over. By 2030 that proportion will double Continue reading
The ageing society debate is at the forefront of calls to reduce government deficits. The debate is driven by the proposition that national governments will not be able to afford to maintain the spending necessary to support the growing demands for medical care and pension support as populations age. At some points, the argument goes, … Continue reading
The u.s. manufacturing workforce is aging rapidly, with half of the existing workforce only 10-15 years away from retirement. Yet,american manufacturing employers are struggling to build a pipeline of new workers. Some 600,000 positions are currently unfilled, and more than three million additional positions are due to open by 2020. Meanwhile, the youth unemployment rate remains … Continue reading
Participation in US – About half of the decline is due to the aging of the population says a White House Report
Since the final quarter of 2007, the labor force participation rate has fallen from 65.9 percent to 62.8 percent in the second quarter of 2014, a decline of 3.1 percentage points. In this report, the Council of Economic Advisers estimates that this 3.1 percentage point decline can be attributed to three main sources: About half … Continue reading
Canada – Aging population could have a positive effect on the labour market outcomes of youth research finds
Post-recession it is common to hear concerns that youth, facing high unemployment rates, are unable to find good job opportunities. Historically, youth have experienced higher unemployment rates than older workers. In the context of an aging workforce dominated by the baby boom generation and delayed retirement, there appears a general concern that older workers are … Continue reading
Official statistics showing an increase in Taiwan’s 65-and-over population indicate that the nation is on course to go from being an “aging society” to an “aged society” Continue reading
As the population grows older an increasing percentage of the workforce will be past age 60. Older workers are ordinarily thought to be less productive than younger ones, raising the question of whether an aging workforce will also be a less productive one. In new research funded by the Social Security Administration, I consider whether … Continue reading
More older Americans want to work than ever before. There is no question that economic stresses have delayed retirement and driven older people to keep working. But there are other forces at work, and they’re part of a sustained change that’s been going on for more than 20 years. Last week’s strong employment report showed … Continue reading
There are a number of reasons why employers should ensure that workers over the age of 50 remain actively employed with their organization. Nobody wants to lose good workers, and most in this age group have a wealth of experience within both their industry and their company. Many of them enjoy what they do and … Continue reading
Canada and Europe are not alone in dealing with important demographic shifts. And worries about increasing recruitment problems, workforce shortages and skills gap are widespread. But there might be more critical situations. For instance, China is just beginning its huge demographic transition. In an article published on brookings.edu, Wan Feng qualifies China as a “demographic overachiever” and analyses … Continue reading