Inclusive labour force participation can reverse the economic consequences of population ageing

Demographic ageing is putting considerable pressure on the economic and social systems of industrialised countries. This column highlights that although the US is in a more favourable position than other OECD countries with respect to the expected future change in old-age dependency ratios, it is also characterised by large differences in labour market outcomes across population groups. In particular, disparities in labour force participation at the intersection of race/ethnicity and gender provide scope for policy aimed at reducing such gaps and thereby mitigating – or even offsetting – the effects of population ageing.