The Impact of an Ageing Population on the Economy

1. Increase in the dependency ratio. This means that there will be more people claiming benefits than working and paying taxes

2. Increased govt spending on health care and pensions

3. Those in work will have to pay higher taxes. This could create disincentives to work and for firms to invest, therefore there could be a fall in AS

4. Shortage of workers. Firms may have to respond by encouraging more people to enter the workforce, through offering flexible working practices.

5. Changing sectors within the economy

 

 

Government Responses to an Ageing Population

1. Increase participation rate,
2. Raise the retirement age
3. Increase the importance of the private sector in providing pensions and health care. However this may cause increased inequality

 

Essays and Revision Notes on Labour Markets

• Labour Markets home
• Demand for Labour
• Supply of Labour
• Wage Determination
• Labour Market Imperfections

Flexible Labour Markets

• Flexible Labour Markets
• Adv and Disadvantages of Flexible Labour Markets
• Increasing Labour Market Flexibility
• Changes UK Labour Markets
• Participation Rate
• Trades Unions
• Ageing Population

Minimum Wages

• Minimum Wages
• Disadvantages Minimum Wages
• Essay on Minimum Wage
• Min Wage at Tutor 2u