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Demography and the New Economy

By John Quiggin

Abstract

The term \u27new economy\u27 is used to refer to two distinct developments. The first is the increasing importance of pure services, particularly those related to information, and the corresponding decline in the importance of the goods-producing sector. The second is the liberalisation of product and labour market and the resulting decline of institutions like lifetime full employment. Although there are connections between these two developments, their demographic implications are quite different. An information-based economy implies long periods of education, late child-bearing and a reversal of the trend towards early retirement. Labour market liberalisation implies extensive use of redundancy as a tool for labour flexibility and an accentuation of the trend for workers over 50 to withdraw from the labour market. This trend has been sustainable so far because the baby boom has resulted in an increase in the proportion of the population aged between 25 and 54. Within the next decade, this proportion will start to decline. Whereas an \u27old economy\u27 perspective implies that the aging of Australia\u27s population will not be a problem for some time, the \u27new economy\u27implies that an \u27aging crisis\u27 could affect the economy in the near future

Topics: New economy, Ageing, Demography, labour market deregulation, Information economy, 340207 Labour Economics
Year: 2001
OAI identifier: oai:espace.library.uq.edu.au:UQ:10994

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