An Alternative Index of Population Aging: Accounting for Education and Elderly Health in the Case of Korea

Abstract

In this study, I propose an alternative index of population aging that accounts for education and elderly health using Korean data. Population aging is a worldwide phenomenon, and most industrialized countries are concerned about its consequences, such as the increasing burdens associated with the provision of elderly support. Most discussion is based on measures that solely consider the age structure of the population. The current study is based on the characteristics approach to population aging, which accounts for changing population composition as well as age structure. In particular, I attempt to propose an alternative index of population aging that accounts for improvements in education and elderly health. Analyses show that the alternative index grows more slowly than the conventional Old Age Dependency Ratio (OADR). Accounting for education and elderly health yields a less gloomy picture for the future. Finally, I discuss policy implications and further development of the new index.