Description

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Demographics, as Peter Drucker famously pointed out, is one of the seven sources of entrepreneurial opportunity. Why are demographics so important? Consider the quality and quantity of the U.S. labor force. Birth rates largely determine the size of the future workforce, and the numbers of younger and older people affect public spending on education. What's more, patterns in marriage and child-bearing affect the labor force, and migration and immigration alter the mix of job skills, languages, and cultures in the U.S. workforce.

While business and government must react to these trends, they can also shape them. Immigration, education, welfare, and tax policies influence births, family composition, and the locations of people and businesses. In private markets, demography interacts with income levels to affect the mix of goods purchased, the types of workers in demand, and the range of new business opportunities available. Demography is a key item in every business or policy planner's toolbox. Demography, Education, and the Workforce shows how to use its principles to advantage.

About the Author

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Robert I. Lerman is senior fellow at the Urban Institute, Washington, D.C., and professor of economics at the American University. Stephanie R. Cellini is an assistant professor of public policy and economics at George Washington University, Washington, D.C.