IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiy2019i1p49-63.html
   My bibliography  Save this article

The Impact of Population Ageing and Social Stratification: The Case of Latvia

Author

Listed:
  • R. Rupeika-Apoga
  • I. Romanova
  • L. Bule
  • Y.E. Thalassinos

Abstract

Population ageing and social stratification is widely assumed to have detrimental effects on the economy yet there is little empirical evidence about the magnitude of its effects. The aim of this article is to investigate the relationships between population ageing and social stratification and the state of economy of a small and post-transition economy. We are looking for these relationships and their strength of influence; at what time after shocking these variables reach their original levels. We apply standard Granger (non-) causality tests, VAR (Vector Auto-Regressive), IRF (Impulse Response Function) and the prediction error variance analysis by using quarterly data from 2000 to 2018. Research results show that the changes in the level of GDP per capita and the number of pensions paid imply changes in the number of retired persons. The research results have important contribute to policy debates about the impact of population ageing and social stratification on the state of economy in small and post-transition economy.

Suggested Citation

  • R. Rupeika-Apoga & I. Romanova & L. Bule & Y.E. Thalassinos, 2019. "The Impact of Population Ageing and Social Stratification: The Case of Latvia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 49-63.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:1:p:49-63
    as

    Download full text from publisher

    File URL: https://www.ijeba.com/journal/195/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lyons, Angela C. & Grable, John E. & Joo, So-Hyun, 2018. "A cross-country analysis of population aging and financial security," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 96-117.
    2. R. Rupeika-Apoga & S.H. Zaidi & Y.E. Thalassinos & E.I. Thalassinos, 2018. "Bank Stability: The Case of Nordic and Non-Nordic Banks in Latvia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 39-55.
    3. Ratna Sahay & Martin Cihak & Papa M N'Diaye & Adolfo Barajas & Srobona Mitra & Annette J Kyobe & Yen N Mooi & Seyed Reza Yousefi, 2015. "Financial Inclusion; Can it Meet Multiple Macroeconomic Goals?," IMF Staff Discussion Notes 15/17, International Monetary Fund.
    4. Daron Acemoglu & Pascual Restrepo, 2017. "Secular Stagnation? The Effect of Aging on Economic Growth in the Age of Automation," American Economic Review, American Economic Association, vol. 107(5), pages 174-179, May.
    5. repec:ers:journl:v:vi:y:2018:i:2:p:39-55 is not listed on IDEAS
    6. Nicole Maestas & Kathleen J. Mullen & David Powell, 2023. "The Effect of Population Aging on Economic Growth, the Labor Force, and Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 306-332, April.
    7. Galbraith, James K., 2012. "Inequality and Instability: A Study of the World Economy Just Before the Great Crisis," OUP Catalogue, Oxford University Press, number 9780199855650.
    8. Olivera, Javier & Andreoli, Francesco & Leist, Anja K. & Chauvel, Louis, 2018. "Inequality in old age cognition across the world," Economics & Human Biology, Elsevier, vol. 29(C), pages 179-188.
    9. Kadir Atalay & Garry F. Barrett, 2015. "The Impact of Age Pension Eligibility Age on Retirement and Program Dependence: Evidence from an Australian Experiment," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 71-87, March.
    10. Ms. Ratna Sahay & Mr. Martin Cihak & Mr. Papa M N'Diaye & Mr. Adolfo Barajas & Ms. Srobona Mitra & Ms. Annette J Kyobe & Yen N Mooi & Mr. Seyed Reza Yousefi, 2015. "Financial Inclusion: Can it Meet Multiple Macroeconomic Goals?," IMF Staff Discussion Notes 2015/017, International Monetary Fund.
    11. Irina Japparova & Ramona Rupeika-Apoga, 2017. "Banking Business Models of the Digital Future: The Case of Latvia," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 846-860.
    12. Nyce,Steven A. & Schieber,Sylvester J., 2005. "The Economic Implications of Aging Societies," Cambridge Books, Cambridge University Press, number 9780521851534, September.
    13. Cihak,Martin & Mare,Davide Salvatore & Melecky,Martin, 2016. "The Nexus of financial inclusion and financial stability : a study of trade-offs and synergies," Policy Research Working Paper Series 7722, The World Bank.
    14. Ms. Era Dabla-Norris & Yan Ji & Robert M. Townsend & Ms. Filiz D Unsal, 2015. "Identifying Constraints to Financial Inclusion and Their Impact on GDP and Inequality: A Structural Framework for Policy," IMF Working Papers 2015/022, International Monetary Fund.
    15. Lopreite, Milena & Mauro, Marianna, 2017. "The effects of population ageing on health care expenditure: A Bayesian VAR analysis using data from Italy," Health Policy, Elsevier, vol. 121(6), pages 663-674.
    16. Nicole Maestas & Kathleen J. Mullen & David Powell, 2016. "The Effect of Population Aging on Economic Growth, the Labor Force and Productivity," NBER Working Papers 22452, National Bureau of Economic Research, Inc.
    17. Nyce,Steven A. & Schieber,Sylvester J., 2005. "The Economic Implications of Aging Societies," Cambridge Books, Cambridge University Press, number 9780521617246, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arkadiusz Piwowar & Maciej Dzikuc, 2020. "Poverty and Social Exclusion: Is this a Problem in Rural Areas in the Visegrad Group Countries?," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 45-54.
    2. Kozin & M.N. & Rodionov & A.V. & Gruzdeva & L.M. & Harlamova & J.A., 2019. "Production Projects under Public-Private Partnership in the Sphere of Economic Security of the Penitentiary System: Issues of Financial, Personnel and Operational Management," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 252-260.
    3. S.S. Galazova, 2019. "Planning and Financing in the Social Development," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 108-115.
    4. Petrovskaya N.E. & Kutsegreeva L.V. & Maksaev A.A. & Raevich I.A., 2019. "Socio-economic Consequences and Prospective Opportunities of the International Labour Migration as a Process of the Global Labour Market Development," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 203-210.
    5. I.P. Denisova & K.N. Samoylova & V.Y. Shirshov & M.Z. Myzaev, 2019. "The Digitalization Features of the Russian Social Media Market Insurance Service," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 167-175.
    6. Akira Shimada, 2019. "Should the Government Promote Global Education?," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 323-341.
    7. Nivorozhkina L.I. & Abazieva K.G. & Dolbina S.V., 2019. "Impact of Contemporary Pension Reforms on Households’ Welfare," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 258-269.
    8. Jesus Lopez-Rodriguez & Cosmin-Gabriel Bolea & Paulino Montes-Solla, 2019. "Sorting Skills by Location in Romania," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 3-27.
    9. Petrovskaya N.E., 2019. "The Position and Tasks of International Organizations in the Labor Migration Management," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 317-324.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lyons, Angela C. & Grable, John E. & Zeng, Ting, 2019. "Impacts of Financial Literacy on the Loan Decisions of Financially Excluded Households in the People's Republic of China," ADBI Working Papers 923, Asian Development Bank Institute.
    2. Wang, Rui & Luo, Hang (Robin), 2022. "How does financial inclusion affect bank stability in emerging economies?," Emerging Markets Review, Elsevier, vol. 51(PA).
    3. Kim, Hoolda & Song Lee, Bun, 2023. "Aging workforce, wages, and productivity: Do older workers drag productivity down in Korea?," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    4. Casper Worm Hansen & Holger Strulik, 2017. "Life expectancy and education: evidence from the cardiovascular revolution," Journal of Economic Growth, Springer, vol. 22(4), pages 421-450, December.
    5. Iñigo Calvo-Sotomayor & Ekhi Atutxa & Ricardo Aguado, 2020. "Who Is Afraid of Population Aging? Myths, Challenges and an Open Question from the Civil Economy Perspective," IJERPH, MDPI, vol. 17(15), pages 1-17, July.
    6. Park, Cyn-Young & Shin, Kwanho & Kikkawa, Aiko, 2021. "Aging, automation, and productivity in Korea1," Journal of the Japanese and International Economies, Elsevier, vol. 59(C).
    7. Massomeh Hajilee & Farhang Niroomand, 2018. "The impact of interest rate volatility on financial market inclusion: evidence from emerging markets," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(2), pages 352-368, April.
    8. Ms. Izabela Karpowicz & Mrs. Nujin Suphaphiphat, 2020. "Productivity Growth and Value Chains in Four European Countries," IMF Working Papers 2020/018, International Monetary Fund.
    9. Lee, Hyun-Hoon & Shin, Kwanho, 2019. "Nonlinear effects of population aging on economic growth," Japan and the World Economy, Elsevier, vol. 51(C), pages 1-1.
    10. Lee, Jong-Wha & Song, Eunbi & Kwak, Do Won, 2020. "Aging labor, ICT capital, and productivity in Japan and Korea," Journal of the Japanese and International Economies, Elsevier, vol. 58(C).
    11. Cylus, Jonathan & Al Tayara, Lynn, 2021. "Health, an ageing labour force, and the economy: Does health moderate the relationship between population age-structure and economic growth?," Social Science & Medicine, Elsevier, vol. 287(C).
    12. Rainer Kotschy & Uwe Sunde & Tommaso MonacelliManaging Editor, 2018. "Can education compensate the effect of population ageing on macroeconomic performance?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 33(96), pages 587-634.
    13. Niklas Engbom, 2019. "Firm and Worker Dynamics in an Aging Labor Market," Working Papers 756, Federal Reserve Bank of Minneapolis.
    14. Cooley, Thomas & Henriksen, Espen, 2018. "The demographic deficit," Journal of Monetary Economics, Elsevier, vol. 93(C), pages 45-62.
    15. Carmen Herrero & Ricardo Martínez & Antonio Villar, 2019. "Population Structure and the Human Development Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 731-763, January.
    16. Piyachart Phiromswad & Sabin Srivannaboon & Pattarake Sarajoti, 2022. "The interaction effects of automation and population aging on labor market," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-16, February.
    17. Zhou, Yang & Wang, Heng & Qiu, Huanguang, 2023. "Population aging reduces carbon emissions: Evidence from China's latest three censuses," Applied Energy, Elsevier, vol. 351(C).
    18. Miao Zhang & Shibing You & Li Zhang & Houli Zhang & Yukun Wang, 2023. "Dynamic Analysis of the Effects of Aging on China’s Sustainable Economic Growth," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    19. Allen, Steven G., 2023. "Demand for older workers: What do we know? What do we need to learn?," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).
    20. Osathanunkul, Rossarin & Dumrong, Pasinee & Yamaka, Woraphon & Maneejuk, Paravee, 2023. "The nonlinear impacts of aging labor and government health expenditures on productivity in ASEAN+3 economies," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 450-470.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:vii:y:2019:i:1:p:49-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.