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To prevent per capita living standards from declining, population ageing must be offset by either immigration, an increase in the employment rate - which includes raising the retirement age - or higher productivity gains. Where is this the case?
P opulation ageing affects all OECD countries . For it to not affect per capita living standards, there must be: Either immigration; Or an increase in the employment rate, which includes raising the retirement age; Or higher productivity gains. The aim of these three possible responses is to prevent population ageing from leading to a fall in per capita potential growth. Among the major OECD countries, per capita potential growth has held up over the past ten years in the United States, the United Kingdom, Japan, Germany and Spain, but not in France or Italy.
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Natixis
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Patrick Artus
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