Abstract
The linkages between population and the economy vary greatly over the demographic transition. Many countries, mostly high income countries, are near the end of the transition and experiencing population aging and declining population growth. This raises concerns about economic stagnation and about the viability of intergenerational transfers systems: family support systems, public pension programs, and health care systems. Many countries, particularly in Africa, are still at relatively early stages of the demographic transition. Their populations are relatively young and experiencing rapid growth. Of great interest is the influence of population dynamics as an increase in the share of the working-age population and related changes has led to new opportunities for economic development referred to as demographic dividends. Economics research also addresses how changes in the economy influence demographic outcomes, fertility, mortality, and migration, which are addressed more extensively in other handbook chapters.
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- 1.
Solow does not distinguish between the labor force growth rate and the population growth rate in his model.
- 2.
Mankiw et al. (1992) extend the model to include education or human capital. In this elaboration an increase in human capital per worker also leads to greater output per worker.
- 3.
See Kelley and Schmidt (2001) for a discussion of other channels through which population growth may influence economic growth.
- 4.
For a modern presentation of the Malthusian model and an analysis of its applicability to pre-industrial England, see Lee, R.D. 1973. “Population in Preindustrial England: An Econometric Analysis.” Quarterly Journal of Economics 87(4):581–607. A growth model that encompasses the role of population in both traditional and modern economies is available in Galor, O.and D. Weil. 2000. “Population, Technology, and Growth: From Malthusian Stagnation to Demographic Transition and Beyond.” American Economic Review 90:806–828.
- 5.
The More Developed Region (MDR) is comprised of Europe, North America, Australia/New Zealand and Japan.
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Mason, A. (2019). 24 Economic Demography. In: Poston, D.L. (eds) Handbook of Population. Handbooks of Sociology and Social Research. Springer, Cham. https://doi.org/10.1007/978-3-030-10910-3_25
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