The main problem
The main problem is that the working-age population is decreasing heavily especially in developed countries. The problem can be reduced by the following possibilities:
- increase in the official age of retirement
- higher participation from older generations and women
- higher immigration rates.
These three possibilities need to work together because the effect of a single one may not be enough. As an example, to stop the declining working-age population in Japan the retirement age should need to rise by 10 to 12 years from actually 64. Well that would be 76 and we would be higher then back in 1920 in the US when the retirement age was 72, compared to an average life expectancy of 58 years in the same year. This isn't really what one should call progress.
Women to work
An interessting point about the female participation rate is, that it is not negatively correlated with the fertility rate. Whereas the female participation rate is really low in Russia, Japan, Eastern Europe, Italy it is really high in the scandinavian countries as well as in the United States and in Ireland.
Normally you would think that the more women goes to work, the less women have children. By looking at the high fertility rates in the Scandinavian countries, Ireland and the United States this assumption proves to be wrong.
Possible solutions
Two possible solutions to get more women to work were presented by Michaela Meier of PWC in the FuW 18.02.09.
- Spending on childcare should be offered for free. Nowadays in some regions you can deduct childcare from your taxable income, this is also a solution but it mostly favour the richer part of the society.
- The second thought of her is even more interessting. Providing a tax free period of 2 years after a birth if the women will return to work after her maternity leave.
Well... please share your thoughts about this possibilities
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