DEMOGRAPHIC SHIFT AND PROJECTED LABOUR SHORTAGE IN CHINA

As a result of China's family planning policy of 'raising population quality and controlling population size' initiated in the late 1970s, China has accomplished a population transition from high birth rate, low mortality rate and high population growth to low birth rate, low mortality rate and low population growth within a remarkably short timefiame. Along with this population transition, however, comes a shifr in population age structure, with a rapid increase in the proportion of elderly people. This paper explores the implications of China's demographic shifr for labour supply and suggests policy changes to target an emerging labour shortage.