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Unformatted text preview: population. Around the period 2025-2030, the proportion of the elderly will reach 15 percent of the total population. Due to the rapidly aging population problem in China, the advantage as a low-cost labor market could be eroded. That is to say, there will be fewer people in the working age and more retirees. The economy will suffer more pressure to support the elder people while encounter a decreasing surplus of labor, especially the lower-skill labor. This paper analyzes the negative effects of population ageing on China’s labor market. (e.g., Peng, 2006 and Golley and Tyers, 2006). Peng’s simulation results show that the labor force decline caused by population aging and low fertility rate will decelerate China’s economic growth by two percentage points annually during the 2020s and by three percentage points annually during the 2040s (Peng 2006)....
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This note was uploaded on 11/17/2009 for the course ECON 339 taught by Professor Habermalz during the Spring '09 term at Northwestern.
- Spring '09