Population Aging and the Education Market in Slovenia and Croatia

Žiga Äepar and Štefan Bojnec ()

Eastern European Economics, 2008, vol. 46, issue 3, 68-86

Abstract: This paper investigates key demographic developments in the Slovenian and Croatian populations and their implications for education and labor markets. Changes in fertility, mortality, and migration have led to a growing proportion of elderly people. The declining proportion of the young is one of the important structural changes affecting demand for education, implying changes in demand for labor employed in education. We use multiple regression models to analyze population aging as a variable explaining changes in demand for education in Slovenia and Croatia. We also include in the regression framework other explanatory variables that determine demand for education. We find that declining fertility has a significant negative influence on the demand for all three levels of schooling-primary, secondary, and tertiary-in both countries and is especially important to demand for primary and secondary schools. This has important policy implications that should be considered to minimize the negative trends for education markets arising from an aging population.

Date: 2008
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