A method for socially evaluating the effects of long-run demographic paths on living standards

A New Measure of Fertility Replacement Level in the Presence of Positive Net Immigration

In most more developed countries, the total fertility rate (TFR) is below 2.1 and net immigration is positive. This paper proposes and calculates for 22 populations for 2011-15 a 'Current Migration Replacement TFR' which in combination with the mortality and absolute net migration for that period generates a stationary population equal in size to the mid-period population. The results show the Current Migration Replacement TFR ranges widely from 0.60 for Singapore to 2.05 for Slovakia. That the Current Migration Replacement TFR is below the 2011-15 TFR in 14 of the 22 countries shows that, when considered in combination with current migration and mortality, in most of the countries the current 'below 2.1' TFR is coherent with population increase, not population decline, over the long run. For New Zealand, Australia, Norway, Sweden and the UK continued current fertility in combination with constant mortality and constant absolute net migration is coherent with more than doubling of the current population size. The value of this measure for illustrating the interconnected population size implications of sub-replacement fertility and immigration, for sub-categorisation of 'post-transitional' populations by population growth prospects, and for guiding population policy is discussed.

A cost of living longer: Projections of the effects of prospective mortality improvement on economic support ratios for 14 advanced economies

The economic implications of increasing life expectancy are important concerns for governments in developed countries. The aims of this study were as follows: (i) to forecast mortality for 14 developed countries from 2010 to 2050, using the Poisson Common Factor Model; (ii) to project the effects of the forecast mortality patterns on support ratios; and (iii) to calculate labour force participation increases which could offset these effects. The forecast gains in life expectancy correlate negatively with current fertility. Pre-2050 support ratios are projected to fall most in Japan and east-central and southern Europe, and least in Sweden and Australia. A post-2050 recovery is projected for most east-central and southern European countries. The increases in labour force participation needed to counterbalance the effects of mortality improvement are greatest for Japan, Poland, and the Czech Republic, and least for the USA, Canada, Netherlands, and Sweden. The policy implications are discussed.