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The EU in a Global Perspective and the Demographic Challenges associated with the Second Demographic Transition Ron Lesthaeghe Gastner-Newman cartogram.

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Presentation on theme: "The EU in a Global Perspective and the Demographic Challenges associated with the Second Demographic Transition Ron Lesthaeghe Gastner-Newman cartogram."— Presentation transcript:

1 The EU in a Global Perspective and the Demographic Challenges associated with the Second Demographic Transition Ron Lesthaeghe Gastner-Newman cartogram – proportional to total population size

2 Part 1: The formal demographic core. The 2 mechanisms of ageing. Population growth (shrink) momentum. Replacement migration.

3 Survivors per births with varying life expectancies at birth : From a neutral mortality decline to squaring off and pure aging effect

4 The stationary population view: from a neutral mortality decline to pure aging

5 Stable population age structures with constant e0= 80 years, but varying total fertility rates. (1.58 to 2.20) TFR

6 In closed populations that have grown very old as a result of sustained sub-replacement fertility, there will be a CONTINUED shrinkage for 50 years AFTER the restoration of exact replacement fertility The Negative Growth Momentum

7 Aging bulge: unavoidable After a long period of subreplacement fertility, there is an unavoidable aging bulge even if fertility returns to replacement level

8 The Second Demographic Transition view Primary determinants of below replacement fertility: Economic : Elevated standard of living & high consumption aspirations, need for double income, high opportunity cost globalization world economy. Cultural : Higher order needs accentuated (self-actualization, expressive values, individual autonomy, freedom of choice, open future,postmaterialist political aspirations …)(cf. Maslows hierarchy of needs) TOGETHER Second Demographic Transition (SDT) Demographic characteristics of the SDT: Postponement of marriage and parenthood, use of efficient contraception. But : varying degrees of catching up of fertility at later ages (main source of difference between TFRs above and below 1.5) Hence structural, not temporary, sub-replacement fertility, but at varying levels ! Rise of alternative living arrangements : longer periods living with parents, living alone, in cohabitation, procreation within cohabitation, post-marital cohabitation, LAT relations, etc. Caveat : Intermediate phase between First DT and Second DT : Sexual revolution, but no transition to efficient contraception = recipe for high teenage fertility, shotgun marriage, young age divorce, early single motherhood, compromised life chances. US is typical example. One of the main reasons for US TFR being = 2.0. Also major danger for 1 st generation immigrant youths from non-patriarchal societies.

9 1.The Fertility Story Careful with period measures !! Postponement & Recuperation in Cohort Fertility The Spanish Cohorts

10 a positive association between SDT and period total fertility : classic case of split correlation All stronger recuperation countries No or weak recup & late starters Source of plot : Tomas Sobotka, Interpretation : Ron Lesthaeghe

11 A strong SDT – fertility postponement link SDT vanguard SDT tail Source: T. Sobotka 2008.

12 TROUGH RECUP PTFR(t+30) = A + B1*BaseCTFR(t=0) + B2*TROUGH(t) + B3*RECUP(t) + e Trough = deficit in cumulated CASFR at age 30 compared to base Recup = part of trough recuperated by age 40 Sample= all never communist European countries, baseline = cohort born , predicting PTFRs in period RESULT : baseCTFR only Rsq. =.505, baseCTFR + Trough Rsq=.673, all 3 including Recup then Rsq=.793. Hence : RECUP IS ESSENTIAL. ONLY countries dip below a TFR below 1.5 that have no or weak recuperation. The Bongaarts babies have remained in his cupboard in a large number of countries, and will stay there for as long as there is no recuperation of fertility after age 30.

13 Cohort Fertility Postponement & Recuperation, Spain. (benchmarks coh40, coh55)

14 SDT and TFRs : inconsistent or double effect ? Self-actualisation, keeping open future. Emancipation: gender equity & better division of labour in family. Organisation & policy aspects re independence of young adults and reduction opportunity costs (child care facilities, schooling, allowances & benefits), housing opportunities. SDT Postponement Recuperation Overall fertility + + _ + Social & Economic constraints: longer education, deregulation labour market etc

15 FAC1_1: SDT – Postponement of Marriage, Parenthood and Overall Fertility,

16 FAC5_1: SDT – Non-conformist Family Formation (Cohabitation, out-of wedlock fertility, single parent household, abortion),

17 The Migration Issue Results of a simulation excercise for the EU-12, 1995 to 2060

18 Population 65+ in EU 15 in 3 Scenarios UN Population Divn. Scenario with constant dependency ratio leads to irrealistic growth and growth waves. xxxxx Note : UN assumes instantaneous drop immigrant fertility level to that of host country – too strong !

19 EU-12 aging if e0=80 and TFR= =>2060 growth of immigrant population EU-12, stock in Descendants newcomers p.a., fertility drops from 4 to 1.64 in 2010 EU-12 Female Pop. Migrant extra female population

20 EU12 nationals + descendants Descendents of foreign mothers but born in EC12 after Foreign stock of 1985 ( old survivors) and all foreign born after SCENARIO: everyone e0=80; immigration= pa.;TFR nationals=1.64, TFR immigrants drops from 4.0 to 1.64 by 2010 Disaggregated projection for EU12 women,

21 Source : D. Coleman

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24 Religious composition of the population, example of Spain Dark blue: active Catholic Light blue : Non-active Cath. Green: Islam-Sunni Black: Islam-Sharia Purple: Protestant + other Red : Agnostic (Read outward) Age & Religion Composition, IIASA projections for Spain. 2009, 2019, Source : Katja Sherbov, Dec 2010

25 Long term SDT – views : Sustained below-replacement fertility, caused by postponement and very little progression beyond 2 children. Rise childlessness among couples. But very different TFR levels (say from 1.0 to 2.0), depending on degree of fertility recuperation at later ages (30+) Negative population growth momentum set in motion : population becomes so old that decline will not stop when TFR reaches replacement again. Decline continues for another 50 years. Unavoidable major aging bulge too. Need for replacement immigration, but mainly useful for maintaining absolute sizes of total population or of total active population. Less useful for reducing aging ( but not useless !) Replacement migration = family migration or family reunification, not just temporary guest workers. But once TFRs remain below 1.5 : no adequate solutions anymore. Hence strong connection between SDT and international migration. And also : SDT leads to multi-cultural, multi-ethnic and multi-lingual societies, which can have very different degrees or patterns of integration. SDT = no convenient equilibrium !

26 Part 2. Various measures compared BUT !!! ONLY the DENOMINATOR CONSIDERED HERE, I.E. THE ECONOMICALLY ACTIVE POPULATION NOT THE NUMERATOR: DEPENDENT PENSIONERS. 3 MEASURES COMPARED Increase in fertility Increase in Labour Force participation rates ( activity rates) Increase in immigration

27 MacDonald-Kippen Total Labour Force Projection Scenarios Effect of TFRs returning to 1.80 children in next 15 yrs ( starting +- in 2000) Effect of Rises in Labour Force Participation rates : Males : after age 30 rising to levels of 1970; Females : rising to Swedish levels at all ages ; change over next 30 yrs. Effect of Increasing Net Migration to 0.5 pct of Total Pop. Size : D= pa => , F & UK= => , US= => pa.

28 BAU BAU= Business as usual

29 ALL CURRENT TFR, MIGR, LF Particip. CURRENT TFR, LF particip, NO MIGR TFR to 1.8 MIGR = 0.5% pa LF partic to high levels Optimistic Combination BAU

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32 Homework for entire EU Favor gender symmetry in housework & earnings; Maintain & increase female employment rates, but reduce opportunity costs (child-care !!!) Do not reduce immigration, but try to manage it with respect to education and favorable adjustment characteristics. Increase labor force participation rates, esp. after age 55.

33 Can the SDT spread to non-western populations ? Overall answer : spread of SDT already occurring in other societies, but not necessarily according to a western sequence. Lowest-Low fertility in Japan, S. Korea, Singapore, Hong Kong, now also caused by massive postponement.. Sub-replacement fertility in Caribbean area (from Cuba to Trinidad ), in 2 Indian states and several Indian metropolitan areas, and even in several Muslim populations (Tunisia, Iran). Sub-replacement fertility widespread in most Chinese provinces. Take off of premarital cohabitation documented in Japan and Taiwan. Cohabitation boom in Latin America. In Japan, Korea, Singapore : postponement of parenthood equally linked to expressive and individualistic value orientations at the micro level ( but not or less strongly to religion/secularism). But : many of these societies have no experience with multi-culturalism (e.g Japan, S. Korea versus Singapore)

34 Future of migration as seen through the SDT perspective. * Migration will continue to gain importance. * Many populations still have high TFRs, and large countries such as India, Pakistan, Bangladesh, Philippines, Indonesia, Mexico …will still produce a positive population growth momentum for several decades to come. * Several African populations ( lower on AIDS) have very high fertility and are also exhibiting a major growth momentum. * No shortage of areas with high population pressure in the next half century, but older and more typical recruitment areas may have reduced capacities for sending migrants. * Hence : geographical/cultural shifts are likely with respect to areas of origin. * Caveat : migrations can also occur even if sending country has very low fertility ( e.g. Polish, Eastern European migration to EU).

35 Conclusions No way to stop ageing via replacement migration alone : numbers completely irrealistic (unless deportation) Replacement migration is only a partial measure which works best if immigrants are in families, sex-balanced, with fertility at or above replacement level. Single sex labour migration is not demographically sound. Replacement migration leads to multicultural societies, but it takes several generations to get to a decisive shift with respect to ancestral origins. Question : are the third and fourth generations integrated? Short term imperatives for D,NL,B : increase labour force participation after age 50 ! Overall : increase productivity via technological innovation and sound capital investment. And reduce public debt !!

36 Health care expenditure

37 Greenhouse gases emissions.

38 Child mortality

39 IS THERE ENOUGH TO GO AROUND ? In millions, UN Medium projections, 2006 revisions. Total Pop Increase Europe ( incl Eur. Russia) Turkey Philippines Bangladesh India Pakistan Indian subcontinent PR China

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41 Can the SDT spread to non-western populations ? Overall answer : spread of SDT already occurring in other societies, but not necessarily according to a western sequence. Lowest-Low fertility in Japan, S. Korea, Singapore, Hong Kong, now also caused by massive postponement.. Sub-replacement fertility in Caribbean area (from Cuba to Trinidad ), in 2 Indian states and several Indian metropolitan areas, and even in several Muslim populations (Tunisia, Iran). Sub-replacement fertility widespread in most Chinese provinces. Take off of premarital cohabitation documented in Japan and Taiwan. In Japan, Korea, Singapore : postponement of parenthood equally linked to expressive and individualistic value orientations at the micro level ( but not or less strongly to religion/secularism). But : many of these societies have no experience with multi-culturalism (e.g Japan, S. Korea versus Singapore)

42 Number of items with effects on postponement of parenthood in World Values Studies, Women aged expected direction (net effects after controls for age, education, job status) JapanSouth KoreaSingapore 1995, , a.Family and gender items 15 of of 16 b.Socialization traits7 of 99 of 97 of 9 c.Work characteristics5 of 5na9 of 10 d.Political orientations 19 of of 197 of 9 e. Ethics and morality issues8 of 107 of 99 of 9 d.Religion4 of 102 of 38of 10 Total 58 of of of 63 total % %

43 Postponmt + weak or no recuperation Postponement + stronger recuperation Less postponement but quantum drop

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