Demographic Developments and Economic Challenges in an Aging Europe

The world’s population is ageing at a rapid and increasing rate. This chapter discusses the challenges that developing countries face as a consequence of growing shares of the population above retirement age. The chapter discusses reasons why commonly advanced solutions to the ageing challenge are not likely to help. Increasing migration is discussed as a non-solution, as is fertility increase and raising taxes. The most likely solution will be found in a combination of increasing the statutory retirement age and encouraging increased labour force participation among those in working ages.