Baby Boomers’ Impact on Work Force and Tax Issues in the Great Plains

Chapter
Part of the Understanding Population Trends and Processes book series (UPTA, volume 7)

Abstract

This study examines the economic consequences of the aging of the baby boom generation, specifically focusing on the Great Plains. We illustrate the region’s stark differences in labor availability between metropolitan and nonmetropolitan areas. Using North Dakota as a case study, we examine the predicted change in available labor and income generation from 2000 to 2020 through an economic simulation model. Our findings indicate that the aging of the baby boom into retirement translates into a significant loss in wage income. Surprisingly, however, in spite of lost wage earnings in the short term, North Dakota’s tax collections will increase due to the aging of the baby boomers into a higher earnings age group who spend more of their disposable income. We conclude by addressing several policy concerns that arise from our analysis.

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Copyright information

© Springer Science+Business Media Dordrecht. 2013

Authors and Affiliations

  1. 1.Department of Sociology and Anthropology, and North Dakota State Data CenterNorth Dakota State UniversityFargoUSA
  2. 2.California Legislative Analyst’s OfficeDaVinci SacramentoUSA
  3. 3.North Dakota State Data CenterNorth Dakota State UniversityFargoUSA

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