Implications of an increasing old-age dependency ratio: The UK and Latvian experiences compared

This paper focuses on the implications of the projected rise in the old-age dependency ratio in Europe and summarises current debates surrounding rising dependency ratios and the responses of policy makers to demographic changes. It reports from Latvia and the United Kingdom the factors influencing the labour market participation of older people. Although Latvia and the United Kingdom are predicted to have similar old-age dependency ratios by 2050, there are significant differences in the cultural scenario, skills profile, and pensions and welfare systems in the two economies, which can be expected to influence the future labour market participation and retirement choices of older people.