The Effects of an Aging Population on Immigration Policy

Abstract

This article considers the relative changes in the supply of and demand for labor that will occur in all developed nations as a consequence of the aging those populations will undergo over the next several generations. The demand for labor will greatly outstrip supply due largely to demographic aging and its economic consequences. Even allowing for the possibility of increases in labor force participation among older persons, other means will have to be found to achieve greater demand/supply balance in the labor market. The author suggests increased immigration as a possible solution and examines the consequences of a hypothetical increase in immigration. For purposes of il lustration, data from the United States are employed throughout the paper.

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