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Population aging in Korea: Importance of elderly workers

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  • Lee, Jaejoon

Abstract

Korea's population is aging at a faster pace than any other major country, and the adverse impact of this trend on the economy is predicted to be significant. This paper focuses on the macroeconomic effects of population aging with particular attention paid to the pace of aging in Korea. According to our analysis, it is difficult to offset the decline in the labor supply driven by rapid population aging, even if the labor force participation rate of the working-age population rises to a significantly high level. We suggest a re-orientation of policy directions to correspond to the behavioral changes of economic agents. Policies must focus on promoting labor force participation among the elderly while pushing towards human capital advancement and higher productivity.

Suggested Citation

  • Lee, Jaejoon, 2023. "Population aging in Korea: Importance of elderly workers," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 45(2), pages 51-69.
    • Handle: RePEc:zbw:kdijep:273450
    DOI: 10.23895/kdijep.2023.45.2.51
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    References listed on IDEAS

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    More about this item

    Keywords

    Korean Economy; Population Aging; Economic Growth;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions

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