Population aging and shrinking society

Won-Yong Oh

Chapter 6 in Market Capitalism and Social Responsibility, 2026, pp 96-111 from Edward Elgar Publishing

Abstract: This chapter analyzes population aging and low fertility as structural forces reshaping economies and societies. Rising life expectancy and declining birth rates are producing shrinking labor forces, mounting welfare burdens, and regional imbalances that threaten social cohesion. Immigration, technological substitution, and reemployment of older workers emerge as partial remedies, yet each carries dilemmas of integration, adaptation, and fairness. Pension sustainability highlights intergenerational justice concerns, with fiscal pressures undermining trust between generations. For businesses, demographic contraction translates into labor shortages, wage pressures, and the need for strategic responses: expanding workforce diversity, investing in automation, and tapping into the silver economy of elder-focused markets. These shifts also influence macroeconomic dynamics, fueling debates over inflation versus deflation. Ultimately, aging and shrinking societies represent not only demographic challenges but also strategic turning points for firms and policymakers seeking resilience, innovation, and sustainable growth.

Keywords: Population Aging; Low Fertility; Labor Shortages; Pension Sustainability; Silver Economy; Demographic Shifts (search for similar items in EconPapers)
Date: 2026
ISBN: 9781049409207
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