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Ageing dynamics of a human-capital-specific population

Author

Listed:
  • Dimiter Philipov

    (Wittgenstein Centre for Demography and Global Human Capital (IIASA, OeAW, University of Vienna))

  • Anne Goujon

    (Wittgenstein Centre for Demography and Global Human Capital (IIASA, OeAW, University of Vienna))

  • Paola Di Giulio

    (Vienna Institute of Demography (Austrian Academy of Sciences))

Abstract

Background: Research on how rising human capital affects the consequences of population ageing rarely considers the fact that the human capital of the elderly population is composed in a specific way that is shaped by their earlier schooling and work experience. For an elderly population of a fixed size and age-sex composition, this entails that the higher its human capital, the greater the total amount of public pensions to be paid. Objective: The main purpose of this paper is to analyse the link between human capital and retiree benefits and its effect on population ageing from a demographic viewpoint. Methods: We construct an old age dependency ratio (OADR), in which each person, whether in the numerator or the denominator, is assigned the number of units corresponding to his/her level of human capital. Based on data for Italy, we study the dynamics of this human-capital-specific OADR with the help of multistate population projections to 2107. Results: Our results show that under specific conditions a constant or moderately growing human capital may aggravate the consequences of population ageing rather than alleviate them. Conclusions: With those findings, the authors would like to stimulate the debate on the search for demographic and/or socio-economic solutions to the challenges posed by population ageing.

Suggested Citation

  • Dimiter Philipov & Anne Goujon & Paola Di Giulio, 2014. "Ageing dynamics of a human-capital-specific population," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 31(44), pages 1311-1336.
    • Handle: RePEc:dem:demres:v:31:y:2014:i:44
    DOI: 10.4054/DemRes.2014.31.44
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    References listed on IDEAS

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    Cited by:

    1. Yatish Kumar & Priya Bhakat, 2022. "Social Capital in Old-Age and the Role of the Social Marginalisation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 371-388, August.

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    More about this item

    Keywords

    aging; human capital; old-age dependency ratio; projections; educational attainment; pensions;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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