The Impact of Education and Health on Labour Force Participation and the Macroeconomic Consequences of Ageing

In the coming years, demographic change will lead to an aging and subsequently shrinking workforce in most industrialized nations. As a result of the demographically induced shrinkage of the workforce, fewer and fewer people will contribute to generating a country's material prosperity. In 2019, the Austrian Institute of Economic Research (WIFO) was commissioned by the Bertelsmann Stiftung to analyse the impact that the expected demographic development in selected industries will have on overall economic development and key macroeconomic variables ("Macroeconomic Consequences of Ageing and Directed Technological Change"). Based on these findings, the effects of demographic change on the economy are now estimated in more detail, considering the influence of education and health as well as better labour force integration of people with health problems on the development of labour force participation.