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Gerontocracy in Motion? European Cross-Country Evidence on the Labor Market Consequences of Population Ageing

Author

Listed:
  • Fertig, Michael

    (ISG, Cologne)

  • Schmidt, Christoph M.

    (RWI)

Abstract
Taking a European cross-country perspective, this paper addresses the most important issues in the nexus of population ageing and labor markets. We start from a descriptive overview of the demographic change currently shaping European societies. The subsequent section intensively discusses the potential consequences of these demographic processes for and interdependencies with the labor market situation in Europe. We place particular emphasis on the issue of non-competitive wage setting. In our empirical application we demonstrate that moderately large birth cohorts seem to experience lower employment rates, but also that education investments might be able to mitigate these consequences, and that the relative economic success of large cohorts might even be disproportionately positive. Finally, in the concluding section we review possible policy options for coping with the consequences of population ageing.

Suggested Citation

  • Fertig, Michael & Schmidt, Christoph M., 2003. "Gerontocracy in Motion? European Cross-Country Evidence on the Labor Market Consequences of Population Ageing," IZA Discussion Papers 956, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp956
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    Cited by:

    1. Fertig, Michael & Schmidt, Christoph M. & Sinning, Mathias G., 2009. "The impact of demographic change on human capital accumulation," Labour Economics, Elsevier, vol. 16(6), pages 659-668, December.
    2. Viorel ROTILÄ‚ & Lidia CELMARE, 2017. "Analysis of a Major Inequity in the Budgetary Wage System: Gerontocracy. Arguments and Solutions," Book chapters-LUMEN Proceedings, in: Camelia IGNATESCU & Antonio SANDU & Tomita CIULEI (ed.), Rethinking Social Action. Core Values in Practice, edition 1, volume 1, chapter 66, pages 730-739, Editura Lumen.
    3. Irene Mosca, 2009. "Population Ageing and the Labour Market: Evidence from Italy," LABOUR, CEIS, vol. 23(2), pages 371-395, June.
    4. Paula C. Albuquerque & João C. Lopes, 2010. "Economic impacts of ageing: an inter‐industry approach," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(12), pages 970-986, October.
    5. Elena Giarda, 2008. "The worsening of wage expectations in Italy: a study based on administrative data," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(1), pages 64-87, March.
    6. repec:zbw:rwirep:0107 is not listed on IDEAS
    7. Niebuhr, Annekatrin & Stiller, Silvia, 2005. "Demographischer Wandel und Arbeitsmärkte in Norddeutschland," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 85(5), pages 326-332.
    8. Niebuhr, Annekatrin & Kotte, Volker, 2005. "Vergleichende Analyse von Länderarbeitsmärkten : Länderstudie Schleswig-Holstein," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Nord 200502, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. J.H.L. Dewhurst, 2006. "Estimating The Effect Of Projected Household Composition Change On Production In Scotland," Dundee Discussion Papers in Economics 186, Economic Studies, University of Dundee.
    10. Christoph M. Schmidt & Michael Fertig & Mathias G. Sinning, 2009. "The Impact of Demographic Change on Human Capital Accumulation," Ruhr Economic Papers 0107, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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    More about this item

    Keywords

    cohort size; demographic change; unemployment;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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