‍Influence of population ageing on labor force participation rate

ZHOU Zhuping1 LIU Haibin2

(1.Population Development Studies Center, Renmin University of China)
(2.School of Sociology and Population Studies, Renmin University of China)

【Abstract】Labor force participation rate is important for labor supply and economic growth. Changes in age structure influence the overall labor force participation rate (LFPR), and population ageing plays an important role in explaining differences in LFPR. By comparing age-standardized LFPR among China, Brazil, France, India, Japan and the US, it is found that LFPR level of young population is considerably higher than that of old population under the same age-specific LFPR. With the decomposition method of differences between rates, it is found that in 2013, the LFPR difference between China and Japan is 12.1 percentage points, of which 79.0% is attributed to their age structure difference. Further empirical analysis through both national and international panel data models also indicate that LFPR is significantly negatively related to population ageing, and is in upset-U shaped relation with the income level.

【Keywords】 population ageing; age standardization; labor force participation rate;

【DOI】

【Funds】 Project of National Social Science Foundation of China (14BRK032)

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(Translated by HAN Xueting)

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This Article

ISSN:1000-6087

CN: 11-1489/C

Vol 40, No. 03, Pages 58-70

May 2016

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Article Outline

Abstract

  • 1 Introduction
  • 2 Literature review
  • 3 Theoretical framework
  • 4 Age-standardized influence of population ageing on labor force participation rate
  • 5 Empirical analysis of the influence of population ageing on labor force participation rate
  • 6 Conclusion and discussion
  • References