Higher employment rates do not stop declining labor supply

Abstract

"Demographic ageing is expected to reduce labor supply in the long run. This could result in a substantial labor shortage. Attracting migrants and promoting labor participation of females and older persons are subject of the public debate to mitigate the problem. Our study focuses on the question, whether domestic human resources will be sufficient to close the gap between future labor supply and demand. We simulate and analyze scenarios even using rather extreme assumptions regarding labor participation rates. The results show higher labor participation rates cannot compensate the demographic influence, as the working age population will shrink to a greater extend and faster than the participation rates." (Author's abstract, IAB-Doku) ((en))

Cite article

Fuchs, J. & Weber, B. (2020): Höhere Erwerbsquoten stoppen nicht den Rückgang des Erwerbspersonenpotenzials. In: Sozialer Fortschritt, Vol. 69, No. 1, p. 45-71. DOI:10.3790/sfo.69.1.45