In the coming years, demographic change will lead to an aging and subsequently shrinking workforce in most industrialized
nations. As a result of the demographically induced shrinkage of the workforce, fewer and fewer people will contribute to
generating a country's material prosperity. In 2019, the Austrian Institute of Economic Research (WIFO) was commissioned by
the Bertelsmann Stiftung to analyse the impact that the expected demographic development in selected industries will have
on overall economic development and key macroeconomic variables ("Macroeconomic Consequences of Ageing and Directed Technological
Change"). Based on these findings, the effects of demographic change on the economy are now estimated in more detail, considering
the influence of education and health as well as better labour force integration of people with health problems on the development
of labour force participation.
JEL-Codes:J11, J21, C53, O4
Research group:Macroeconomics and Public Finance – Labour Economics, Income and Social Security