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Coping with Ageing: A Dynamic Approach to Quantify the Impact of Alternative Policy Options on Future Labour Supply in OECD Countries

  • Jean-Marc Burniaux
  • Romain Duval
  • Florence Jaumotte

In the face of the substantial ageing of population expected to occur in OECD countries over coming decades, policies that boost labour-force participation attract considerable interest. There remain large cross-country divergences in participation rates that are largely accounted for by differences in participation of specific groups, in particular prime-age women, older workers and also youth. This suggests that policies targeting these groups could have important effects. The aim of this paper is to examine whether the potential impact of several policy reforms is able to attenuate or to offset the adverse trend in aggregate participation rates that would otherwise occur because of ageing population. It uses a simple dynamic modelling framework that generates longer-term projections of participation rates and labour supplies in OECD countries and alternative scenarios of policy reforms. The main outcome of this analysis is that the combined effect of possible reforms targeting ... Faire face au vieillissement : Une approche dynamique pour mesurer l'impact d'alternatives politiques sur l'offre future de travail dans les pays de l'OCDE Les pays de l’OCDE sont confrontés à un vieillissement important de leur population au cours des décades à venir et ceci explique le regain d’intérêt considérable pour les politiques susceptibles de stimuler la participation au marché du travail. Il subsiste des différences importantes de participation entre les pays de l’OCDE qui s’expliquent en grande partie par des différences de participation de groupes spécifiques, en particulier les femmes dans la force de l’âge, les travailleurs âgés et les jeunes. Ces différences suggèrent qu’il reste une marge de manoeuvre importante pour des réformes de politique économique visant ces groupes. Le but de ce papier est d’examiner si l’impact potentiel d’un certain nombre de réformes est susceptible d’atténuer, voire de compenser, la tendance future à la diminution des taux de participation agrégés telle qu’elle résulterait du vieillissement de la population. Cette analyse utilise un modèle dynamique simple qui génère des prévisions à long ...

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 371.

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Date of creation: 21 Jun 2004
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Handle: RePEc:oec:ecoaaa:371-en
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