The Challenges of Aging Population: Demographic Development of Labor Force and Immigration Policy

Given that the amount of elderly population in Finland is growing fast, the author takes a look at the economic policies that aim at combating the challenges brought by aging population in developed countries. The degree of urbanization of a capital city can be determined by the level of demographic changes over time. In this study, the author uses the urban data to analyze the determinants of demographic changes, which have a significant impact on regional policies and regulations. The results reveal important insights on the implications of migration and employed labor force on the regional economy. It is acknowledged that factors such as quality of human capital, labor mobility and housing facilities are integral parts of demographic development. One of the important predictors of demographic changes is labor mobility. The results of ARIMAmodels show how the number of employed labor force will change in future in the capital region.New research opportunities are opened in the policy control of inbound and outbound migration to the capital city as well as in the strategic implications of income gap on the regional economy.