Aging Society and Human Resources Rating: An Empirical Investigation
Keywords:aging society, human resources rating, an inverted U-shaped relationship, weak democracy, low income countries
This paper examines how aging society affects human resources rating. Based on a sample consisting of 195 countries from 1990-2019, an inverted U-shaped relationship is found between aging society and human resources rating. As long as the aging people do not prove to be a burden on national exchequer, they may improve human resources rating owing to their experience, learning and knowledge. However, a rise in the ratio of aged people to labor force after a certain threshold burdens governments and forces them to shift away resources to the social securities of the aging people which could have been allocated for younger people. As a consequence, human resources rating worsen. The findings substantially hold for weak democracies and low income countries.