Policy solutions to ameliorate the negative impact of aging on economic productivity: a systematic review

Population aging creates fiscal pressures on public systems for health care, pensions, and social protection. Identifying policies to mitigate the negative impact of an aging population on economic growth and productivity is crucial.

Adhering to PRISMA standards, we systematically searched four databases based on concepts of (1) population aging, (2) economic growth, (3) economic productivity, (4) policy, (5) intervention, and (6) amelioration or improvement. Included studies were in English and assessed how policy interventions affect economic growth or productivity.

Six studies were identified, modeling policy interventions aimed at increasing labor force participation to reduce the impact of aging on economic productivity. Policies focused on extrinsic motivation, such as mandating workers to remain in the labor force, might boost participation, but may reduce productivity. In contrast, policies enhancing intrinsic motivation through improvements in health, education, and skill development positively influenced labor force retention by increasing human capital.

Evidence from a small number of modeling studies suggests that policies that foster intrinsic motivation should be prioritized, as these approaches promote a more sustainable workforce while avoiding the potentially negative consequences of extrinsic motivation policies like mandating labor force participation by older adult workers.