policymakers demonstrate

3 Population, Migration, Ageing and Health:
ASurvey
Christian Dustmann, Giovanni Facchini
and Cora Signorotto
Abstract
We review the literature on recent demographic changes in Europe, focusing
on two of the main challenges brought about by an ageing population: severe
labour shortages in many sectors of the economy and growing pressures on
both health and welfare systems. We discuss how and to what extent migration
can contribute to addressing these challenges both in a short and a long-term
perspective. Finally, we identify several areas in which more research is needed
to help devise more effective policies to cope with a greying society.
3.1 Introduction
As European countries experience rapidly ageing populations, two major challenges
have emerged for policy-makers. First, the decline in the size of the
domestic labour force implies severe shortages in the availability of key skills
needed in several sectors of the economy. 1 Possible consequences are reduced
productivity growth and decline in global competitiveness. Second, the increase
in life expectancy will typically imply longer periods spent in retirement, generating
pressures on the sustainability of existing pension systems, as well as
new needs to provide care for a growing elderly population.
Immigration is often referred to as a possible response to address both of
these challenges. Young foreign workers can fill some of the short-term skill
shortages that have emerged and contribute in the medium and long run to
reversing the trend towards population stagnation. At the same time, cultural
differences and the common perception that foreigners might be a threat for
the domestic population, in conjunction with the large migrations required to
counter demographic developments in many European countries, suggest that
migration can only be part of a broader mix of interventions.
The goal of this survey is to provide a systematic overview of the literature
that has analysed the interplay between population dynamics, ageing, health
and migration, aimed at offering policy-makers a sound understanding of the
state of the art in this important research area. At the same time, we will identify
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