Is there a contradiction between the European Union's restrictive migration policies and the demographic challenge of population aging?

Details

Supervisors

Defraigne, Jean-Christophe

Faculty

Louvain School of Management

Degree label

Master [60] de spécialisation en entreprises et politiques économiques européennes

Abstract

enThis paper investigates the potential contradiction between the European Union’s increasingly restrictive migration policies and the demographic challenge posed by population aging. While the EU faces a declining fertility rate and a rising old-age dependency ratio, its member states continue to adopt policies that limit immigration, particularly of low-skilled workers. A linear regression model is used to estimate the impact of aging, unemployment, and research and development (R&D) investment on productivity, measured via GDP per capita. Results suggest that the old-age dependency ratio and the unemployment level negatively affects productivity, whereas R&D investment has a significant positive effect. The findings highlight that increasing investment in technology does not automatically solve the economic challenges associated with an aging population.