econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 28 August 2016

How Are Populations Shifting Within Developed Countries?

from the St Louis Fed

-- this post authored by Ana Maria Santacreu

In recent years, developed countries have experienced a change in the age composition of their population. In particular, these countries have seen an increase in the age-dependency ratio, computed as the ratio of the young population (under 15) and elderly population (65 and over) to the working-age population (15 to 64).

Because the young and the elderly are the most likely to be economically dependent, analyzing their recent evolution may help us understand how changes in the age-dependency ratio could affect other economic outcomes in the developed world. In particular, the evolution of the three variables making up the age-dependency ratio - the elderly population, the young population and the working-age population - is of interest.

The figure below plots the annual age-dependency ratio for the G-7 countries over the period 1990-2012. In recent years, all these countries have experienced an increase in age-dependency ratios.

age dependency ratios of g-7 countries

Among the G-7, Japan has experienced the largest increase in its age-dependency ratio. It was also the country where these demographic trends started first.

From the early 90s, Japan has seen a large increase in its elderly population, with 25 percent of its total population being 65 and older in 2014. Its age-dependency ratio was 61 percent.

In all the G-7 countries, the increase in the age-dependency ratio has been driven by an increase in the elderly population together with a decrease in the working-age population. This increase has happened despite a decrease in the young population ratio in all of the G-7 countries. The young, working-age and elderly populations as percentages of the entire populations of countries are shown in the figures below.

young population ratio of g-7 countries

working-age population ratios of g-7 countries

elderly population ratio for g-7 countries

The decrease in the young population may also pose problems for the economic future of countries, since it is likely going to contribute to a reduction in labor force participation in the long run. Indeed, fertility has been declining in all these countries.

A decrease in the labor force due to demographic trends may result in a slowing down of economic growth. This could eventually spill over to developing economies. Policies aimed at alleviating these problems could address increasing productivity to counteract a shrinking working population or stimulating the labor force participation of the elderly population.

Additional Resources

Source

https://www.stlouisfed.org/on-the-economy/2016/august/how-populations-shifting-developed-countries

Disclaimer

Views expressed are not necessarily those of the Federal Reserve Bank of St. Louis or of the Federal Reserve System.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Minsky’s Theory of Asset Prices: Why Minsky Was NOT a Neo-Monetarist
Finance and Growth: The Direction of Causality
News Blog
Early Headlines: Asia Stocks Mixed, Oil Up, Dollar Down, China GDP On Target, GOP Govs Defend Medicaid Expans., Trump Wants To Cut Fed. Spending By $ 1 Trn, Trump's Troubling Foreign Deals And More
The Fake News That Sealed The Fate Of Antony And Cleopatra
The Jobs With The Biggest Cash Bonuses
Astronomers Spot Strange, Bow-like Structure In Venus' Atmosphere
Raising A Child Is An Extremely Expensive Undertaking
The World's Staggering Wealth Divide
What We Read Today 19 January 2017
OK Go - The One Moment - Official Video
January 2017 Philly Fed Manufacturing Survey Significantly Improves and Remains In Expansion.
December 2016 Residential Building Sector Mixed
14 January 2017 Initial Unemployment Claims Rolling Average Improvement Continues
Stock Market Bull Faces Important Test
Infographic Of The Day: Movies That Struck Oil
Investing Blog
How To Invest In Oil For Long-term Investors
Investing.com Technical Summary 19 January 2017
Opinion Blog
What Is The Natural Interest Rate - And What If We Go Above It?
A New Deal With Capitalism Requires A Revolution In Politics And Markets
Precious Metals Blog
Four Catalysts Drive Gold And Silver For 2017
Live Markets
19Jan2017 Market Close: Wall Street Closes Down Fractionally On Lackluster Investor Participation Ahead Of Tomorrow's Presidential Inauguration, George Soros Said That Global Markets Will Falter
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved