Saturday, March 21, 2009

Answering The Required Questions

Reasons for ageing population
Fertility decline (1.2 children per woman)
Highest life expectancy gains. (75 and 81.2 years respectively for men and woman).
Hence Italy’s population will be projected to stagnant and decrease with the highest pace and intensity within the European context.

The Italian population will decrease by around 28% over the next 50 years. 0-14 age group will fall by 40%; the working age population (15-64) will decrease by 44%, while only the older cohorts will increase, by 50%.

Consequences of an ageing population.
1. Low labour force
--- ----An ageing population will cause less people to be of working age. Therefore, the working population will have to support an increasing burden in the coming decades, as there will be more old people to support.

2. Poor economic growth.
---With a small workforce, this will result in poor economic growth of the country and will negatively affect the prosperity of the country. Also negatively affect the stability of the country.

3. Financial burden on the growing old ages
----The possibility to support the financial burden of an "aged society" is very likely. Unable to sustain the country

4. Other small implications of population decline.


Coping with an ageing population.
1. Increasing age limit of labour market.
--- By increasing the span of the labour market, this will reduce the number of retirees and at the same time increase the number of workers. Hence, this measure has double the advantage.

2. Improve fertility rates.
---- Method no. 1 is not really effective in preventing ageing population in the long run. Hence the long-term solution is to raise the fertility rates. Government can also help in encouraging higher birth rates.

3. Migration.
-------Migration has an immediate and relatively strong impact on the working age population, as fertility rates among immigrant women are often relatively high. Hence, this can also raise fertility level. In Italy, migration is particularly beneficial for the labour demand, particularly for blue-collar workers.

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