microDEMS – A Dynamic Microsimulation Model for Austria. Illustration Using the Example of the Development of Labour Force Participation Until 2040

The dynamic microsimulation model microDEMS (Demographic Change, Employment and Social Security) developed by WIFO offers the possibility to simulate individual life courses over a longer period of time and thus to obtain long-term projections of the influence of personal, family, socio-demographic or institutional factors on economic parameters such as labour force participation. The present article illustrates this using the example of the influence of demographic changes, educational expansion and general trends on the development of labour force participation until 2040. The projections show an increase in the number of people in the labour force despite a decline in the working-age population. This increase is expected to be mainly due to the increase in labour force participation of older workers, also as a result of the pension reforms implemented so far.