The composition of spending changes as consumers age, with a greater proportion allocated to healthcare, food and drink, and less to education, transport and recreation. The experience of countries that have already aged significantly, such as Japan, suggests that this will have a significant impact on employment in these sectors in countries that are set to age rapidly over the coming decades. What’s more, this could weigh on productivity growth as the sectors likely to see the greatest increase in demand are typically more labour-intensive.
Become a member to read more
This is premium content that requires an active Capital Economics subscription to view.
Already a member?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services