DEMOGRAPHIC TRANSITION AND LABOUR MARKET CHANGES: IMPLICATIONS FOR ECONOMIC DEVELOPMENT IN CHINA

Iris Claus, Les Oxley, Yang Du and Cuifen Yang

Journal of Economic Surveys, 2014, vol. 28, issue 4, 617-635

Abstract: China has witnessed a rapid demographic transition in recent decades, which has driven changes in labour market outcomes as evidenced by labour shortages and increasing wages for unskilled workers. In this paper, the authors survey the literature on population transition, factors influencing fertility and how these have changed, and population policies in China. The fundamental role of demographic transition in labour market changes is also reviewed. In addition, the paper discusses the implications of demographic transition and labour market changes for economic development in China, including ageing, impacts on potential economic growth rates, and challenges to human capital accumulation.

Date: 2014
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