The Impact of Population Aging and Public Health Support on EU Labor Markets

Mirela Cristea, Gratiela Georgiana Noja, Petru Stefea and Adrian Lucian Sala
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Mirela Cristea: Department of Finance, Banking and Economic Analysis, Faculty of Economics and Business Administration, University of Craiova, Center for Banking and Financial Research, 13 A I Cuza Street, 200585 Craiova, Romania
Gratiela Georgiana Noja: Department of Marketing and International Economic Relations, Faculty of Economics and Business Administration, West University of Timisoara, East European Center for Research in Economics and Business, 16 Pestalozzi Street, 300115 Timisoara, Romania
Petru Stefea: Department of Management, Faculty of Economics and Business Administration, West University of Timisoara, 16 Pestalozzi Street, 300115 Timisoara, Romania
Adrian Lucian Sala: Doctoral School of Economics, Faculty of Economics and Business Administration, University of Craiova, 13 A I Cuza Street, 200585 Craiova, Romania

IJERPH, 2020, vol. 17, issue 4, 1-27

Abstract: Population aging and public health expenditure mainly dedicated to older dependent persons present major challenges for the European Union (EU) Member States, with profound implications for their economies and labor markets. Sustainable economic development relies on a well-balanced workforce of young and older people. As this balance shifts in favor of older people, productivity tends to suffer, on the one hand, and the older group demands more from health services, on the other hand. These requisites tend to manifest differently within developed and developing EU countries. This research aimed to assess population aging impacts on labor market coordinates (employment rate, labor productivity), in the framework of several health dimensions (namely, health government expenditure, hospital services, healthy life years, perceived health) and other economic and social factors. The analytical approach consisted of applying structural equation models, Gaussian graphical models, and macroeconometric models (robust regression and panel corrected standard errors) to EU panel data for the years 1995–2017. The results show significant dissimilarities between developed and developing EU countries, suggesting the need for specific policies and strategies for the labor market integration of older people, jointly with public health expenditure, with implications for EU labor market performance.

Keywords: older workers; labor productivity; labor market policies; health expenditure; econometric procedures; European Union (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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