Demographic Transition and Labour Market Changes: Implications for Economic Development in China

Abstract

This chapter reviews China's population policies and examines their role in economic development. It explores demographic transition in China by addressing the country's population policy and its changing role, the problem of declining fertility, and the uniqueness of the transition. The effect of economic development on fertility decline has been demonstrated in many developed countries where population control policies do not exist. Both the strict population control policy and socioeconomic development have played active roles in the decline in fertility in China, which means that China has spent less time than many other countries in completing the process of demographic transition. The chapter discusses the effect of demographic transition on recent changes in the labour market. It analyses the implications of demographic transition for economic development. To sustain economic development, policymakers must find a way to make use of the latter to offset the negative impacts of labour shortage.

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