Emerging issues in the life cycle perspective in the context of population peaking

Abstract

This paper proposes a theoretical examination of how taking a life cycle perspective can provide a better assessment of Canadian public policies in the context of population peaking. It links the changing life cycle patterns brought about by increasing age of entry into the different phases of life and increase in life expectancy to emerging issues related to population peaking, such as recruitment and aging of immigrants or future labour demand and supply by broad skill level. Although most of the paper is theoretical in nature, a short section of it takes an empirical look and contrasts cross-sectional and life cycle estimates of economic dependency ratios for Canadian-born and foreign-born individuals. These estimates are obtained from a dynamic microsimulation model of the Canadian population (LSD-C) that takes into account, among other things, differentials in labour force participation or educational attainment between population groups. The article concludes with suggestions on the most important data gaps that need to be filled to better inform policymaking processes.