IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v10y2020i2p36-d373476.html
   My bibliography  Save this article

The Issues and Challenges of Local Government Units in the Era of Population Ageing

Author

Listed:
  • Katarzyna Maj-Waśniowska

    (Department of Local Finance, Cracow University of Economics, ul. Rakowicka 27, 31-510 Cracow, Poland)

  • Tomasz Jedynak

    (Department of Risk Management and Insurance, Cracow University of Economics, ul. Rakowicka 27, 31-510 Cracow, Poland)

Abstract

So far, issues related to the effects of ageing have been studied mainly from the perspective of national policy and international analyses. The study fills the research gap in this area focusing on the impact of demographic changes on the policy of local government units (LGUs). In the first section, a literature review of the research conducted so far has been performed. The empirical part contains the results of the study that was carried out on a sample of 131 municipalities of the Małopolska Voivodeship. The results obtained were subject to statistical analysis, based upon elements of descriptive statistics, cluster analysis and hierarchical clustering (k-means algorithm, Ward’s method) and statistical inference (Chi-square tests). It was found that the most important social problems identified by municipalities include in particular: demographic processes (indicated as significant by 71% of municipalities), population migrations (76%), unemployment (88%), alcoholism (93%) and poverty (75%). On the other hand, the following problems are perceived to a lesser extent: deficits in the level of education (15%) and social capital (36%), as well as participation in public (31%) and cultural (34%) life. However, only a few municipalities, mainly ones that are larger and more urbanised, see the key importance of the intensity of the ageing process (33% of cities with powiat rights, 14% of urban municipalities and only 4% of rural municipalities). Studies also indicate that in the light of the diagnosis of current problems, the greatest challenges associated with an ageing population are related to the lack of adequate financial resources, a decrease in a municipality’s income, a deteriorating situation in the local labour market, reduced family care potential, increased health care costs and social aid. It was also noted that from the municipalities’ point of view, the consequences of an ageing population will not only have a financial dimension, but will also require a certain redefinition of the catalogue of tasks to be carried out.

Suggested Citation

  • Katarzyna Maj-Waśniowska & Tomasz Jedynak, 2020. "The Issues and Challenges of Local Government Units in the Era of Population Ageing," Administrative Sciences, MDPI, vol. 10(2), pages 1-23, June.
    • Handle: RePEc:gam:jadmsc:v:10:y:2020:i:2:p:36-:d:373476
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/10/2/36/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/10/2/36/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Klaus Prettner, 2013. "Population aging and endogenous economic growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 811-834, April.
    2. Robert Schoeni & Mary Ofstedal, 2010. "Key themes in research on the demography of aging," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 5-15, March.
    3. David E. Bloom & David Canning & Günther Fink, 2010. "Implications of population ageing for economic growth," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(4), pages 583-612, Winter.
    4. Jäger, Philipp & Schmidt, Torsten, 2016. "The political economy of public investment when population is aging: A panel cointegration analysis," European Journal of Political Economy, Elsevier, vol. 43(C), pages 145-158.
    5. Berk, Jillian & Weil, David N., 2015. "Old teachers, old ideas, and the effect of population aging on economic growth," Research in Economics, Elsevier, vol. 69(4), pages 661-670.
    6. David E. Bloom & Dara Lee Luca, 2016. "The Global Demography of Aging: Facts, Explanations, Future," PGDA Working Papers 13016, Program on the Global Demography of Aging.
    7. Renuga Nagarajan & Aurora A.C. Teixeira & Sandra T. Silva, 2013. "The impact of an ageing population on economic growth: an exploratory review of the main mechanisms," FEP Working Papers 504, Universidade do Porto, Faculdade de Economia do Porto.
    8. Lee, Hyun-Hoon & Shin, Kwanho, 2019. "Nonlinear effects of population aging on economic growth," Japan and the World Economy, Elsevier, vol. 51(C), pages 1-1.
    9. Nicole Maestas & Kathleen J. Mullen & David Powell, 2023. "The Effect of Population Aging on Economic Growth, the Labor Force, and Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 306-332, April.
    10. Gauti B. Eggertsson & Manuel Lancastre & Lawrence H. Summers, 2019. "Aging, Output Per Capita, and Secular Stagnation," American Economic Review: Insights, American Economic Association, vol. 1(3), pages 325-342, December.
    11. Axel B?rsch-Supan & Klaus H?rtl & Alexander Ludwig, 2014. "Aging in Europe: Reforms, International Diversification, and Behavioral Reactions," American Economic Review, American Economic Association, vol. 104(5), pages 224-229, May.
    12. Tony Lawson, 2016. "How the Ageing Population Contributes to UK Economic Activity: A Microsimulation Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(5), pages 497-518, November.
    13. Mateo Zokalj, 2016. "The impact of population aging on public finance in the European Union," Financial Theory and Practice, Institute of Public Finance, vol. 40(4), pages 383-412.
    14. Narciso, Alexandre, 2010. "The impact of population ageing on international capital flows," MPRA Paper 26457, University Library of Munich, Germany.
    15. Andrew Coleman, 2014. "Squeezed in and squeezed out: the effects of population ageing on the demand for housing," The Economic Record, The Economic Society of Australia, vol. 90(290), pages 301-315, September.
    16. Lisenkova, Katerina & Mérette, Marcel & Wright, Robert, 2013. "Population ageing and the labour market: Modelling size and age-specific effects," Economic Modelling, Elsevier, vol. 35(C), pages 981-989.
    17. Wolfgang Lutz & Warren Sanderson & Sergei Scherbov, 2008. "The coming acceleration of global population ageing," Nature, Nature, vol. 451(7179), pages 716-719, February.
    18. Nicole Maestas & Kathleen J. Mullen & David Powell, 2016. "The Effect of Population Aging on Economic Growth, the Labor Force and Productivity," NBER Working Papers 22452, National Bureau of Economic Research, Inc.
    19. Jonathan Grant & Stijn Hoorens, 2006. "The new pronatalism?," Public Policy Review, Institute for Public Policy Research, vol. 13(1), pages 13-25, March.
    20. Piggott, John & Woodland, Alan (ed.), 2016. "Handbook of the Economics of Population Aging," Handbook of the Economics of Population Aging, Elsevier, edition 1, volume 1, number 1.
    21. Bloom, D.E. & Luca, D.L., 2016. "The Global Demography of Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 3-56, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mamun, Shamsul Arifeen Khan & Rahman, Mohammad Mafizur & Khanam, Rasheda, 2020. "The relation between an ageing population and economic growth in Bangladesh: Evidence from an endogenous growth model," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 14-25.
    2. Lee, Hyun-Hoon & Shin, Kwanho, 2019. "Nonlinear effects of population aging on economic growth," Japan and the World Economy, Elsevier, vol. 51(C), pages 1-1.
    3. Fukuda, Shin-ichi & Okumura, Koki, 2021. "The aging society, savings rates, and regional flow of funds in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).
    4. Yi-Chun Ko & Shinsuke Uchida & Akira Hibiki, 2024. "Substitution of Human and Physical Capitals in Farm Adaptation to Extreme Temperatures: Evidence from Corn Yields in US," TUPD Discussion Papers 49, Graduate School of Economics and Management, Tohoku University.
    5. Wen-Hsin Huang & Yen-Ju Lin & Hsien-Feng Lee, 2019. "Impact of Population and Workforce Aging on Economic Growth: Case Study of Taiwan," Sustainability, MDPI, vol. 11(22), pages 1-13, November.
    6. Annarita Baldanzi & Klaus Prettner & Paul Tscheuschner, 2019. "Longevity-induced vertical innovation and the tradeoff between life and growth," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(4), pages 1293-1313, October.
    7. Miao Zhang & Shibing You & Li Zhang & Houli Zhang & Yukun Wang, 2023. "Dynamic Analysis of the Effects of Aging on China’s Sustainable Economic Growth," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    8. Kim, Jounghyeon, 2023. "Does population aging matter for remittances in developing countries?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1038-1056.
    9. Jiang, Dequan & Lan, Meng & Li, Weiping & Shen, Yongjian, 2024. "Threat or opportunity? Unveiling the impact of population aging on corporate labor investment efficiency," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    10. Dong-Hyeon Kim & Peiyao Liu & Shu-Chin Lin, 2024. "The moderating role of financial development in the nexus between population aging and saving," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-32, April.
    11. Costantini, Valeria & Sforna, Giorgia, 2020. "A dynamic CGE model for jointly accounting ageing population, automation and environmental tax reform. European Union as a case study," Economic Modelling, Elsevier, vol. 87(C), pages 280-306.
    12. Thach Ngoc Pham & Duc Hong Vo, 2021. "Aging Population and Economic Growth in Developing Countries: A Quantile Regression Approach," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(1), pages 108-122, January.
    13. Thomas Ziesemer & Anne von Gässler, 2021. "Ageing, human capital and demographic dividends with endogenous growth, labour supply and foreign capital," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(2), pages 129-160, May.
    14. Futagami, Koichi & Sunaga, Miho, 2022. "Risk aversion and longevity in an overlapping generations model," Journal of Macroeconomics, Elsevier, vol. 72(C).
    15. Tselmuun Tserenkhuu, 2023. "Population aging and economic growth: A semiparametric panel data analysis," Economics Bulletin, AccessEcon, vol. 43(1), pages 342-354.
    16. Guy Lacroix & Pierre-Carl Michaud, 2024. "Tax Incentives and Older Workers: Evidence from Canada," Cahiers de recherche / Working Papers 02, Chaire de recherche Jacques-Parizeau en politiques économiques / Jacques-Parizeau Research Chair in Economic Policy.
    17. Mónica L. Azevedo & Óscar Afonso & Sandra T. Silva, 2017. "Endogenous Growth and Intellectual Property Rights: A North–South Modelling Proposal with Population Ageing," Australian Economic Papers, Wiley Blackwell, vol. 56(1), pages 72-94, March.
    18. Sang-Hyop Lee & Jungsuk Kim & Donghyun Park, 2017. "Demographic Change and Fiscal Sustainability in Asia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(1), pages 287-322, October.
    19. Iñigo Calvo-Sotomayor & Ekhi Atutxa & Ricardo Aguado, 2020. "Who Is Afraid of Population Aging? Myths, Challenges and an Open Question from the Civil Economy Perspective," IJERPH, MDPI, vol. 17(15), pages 1-17, July.
    20. Goh, Soo Khoon & McNown, Robert & Wong, Koi Nyen, 2020. "Macroeconomic implications of population aging: Evidence from Japan," Journal of Asian Economics, Elsevier, vol. 68(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:10:y:2020:i:2:p:36-:d:373476. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.