Research on the Influence of Population Aging on Labor Cost in Hebei Province

Beijing Jiaotong University Beijing, China

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Abstract

Background. In the 1970s and 1980s, China implemented the family planning policy, which increased the proportion of the working age population by controlling the population fertility rate, bringing a demographic dividend to China at that time. Because of the implementation of family planning policy, China has stepped into an aging society in advance. The aging of population has a profound impact on all aspects of society. This paper has a strong practical significance for the study of the impact of aging of population on labor cost. Methods. Based on the theories of population transformation, population dividend and market supply-demand equilibrium, this paper uses the methods of literature review and statistical analysis to look up the relevant data of Hebei Provincial Bureau of statistics and National Bureau of statistics, and uses Stata16 to analyze the correlation and significance test between the elderly population coefficient and labor cost. Finally, it analyzes the relationship between the aging population and labor supply and demand the influence path is discussed. Results. The results show that there is a significant positive correlation between the elderly population coefficient and labor cost. Conclusion. The aging of population structure makes the supply of young and middle-aged labor insufficient. At the same time, due to the strong demand of the old industry, the demand for labor increases. The imbalance of supply and demand leads to the increase of labor cost. The aging of the population indirectly increases the number of years of education for the labor force, the increase of the labor force’s investment in its own human capital and the gradual improvement of the current social security system, which also increases the labor cost from the side.