New Report From TSKB on International Women's Day: No Room for Inequality in an Ageing World

TSKB Economic Research published its new report titled ‘No Room for Inequality in an Ageing World’. Focusing on global demographic change, the report adopts a multidimensional approach to address the economic and social impacts of an aging population. The report states that the 65+ population will increase in Türkiye in the coming years, as it will be the case in the world, and that the economic impact of the aging population can be limited by increasing women's participation in economic life.

TSKB (Industrial Development Bank of Türkiye) published another special report for International Women's Day on March 8. Prepared by TSKB Economic Research, the report is titled ‘No Room for Inequality in an Ageing World’ and adopts a multidimensional approach to address the economic and social impacts of an aging population.

The report states that the aging population in Türkiye is increasing, and the 65+ population is expected to reach 13.5% in 2030, 23.1% in 2050 and 31.7% in 2075. While the current status of declining fertility rates corresponds to a decrease in the child dependent population, the report notes that accessible care services for the elderly should become widespread to increase women's participation in the labor force. The report reminds that 58.8% of women who are at working age in Türkiye but do not participate in the labor force state that this is due to the burden of unpaid care at home.

The report states that population aging and the slowing growth in the working-age population may suppress economic growth, while international studies highlight gender equality in labor force participation as a key factor for sustaining economic growth. While it is emphasized that women's labor force participation rate in Türkiye lags behind OECD member countries, the gender gap is 37.2 percentage points, which is 2.6 times higher than the OECD average. The report points out that women in Türkiye, whose life expectancy is 5.3 years longer than men, tend to become one of the most vulnerable segments of society in their advanced age due to gender inequality.

Other highlights from the report are as follows:

• As of the end of 2023, women's labor force participation rate in Türkiye stood at 40.8%, lagging behind the OECD average. 
• In Türkiye, 34.4% of women work informally, compared to 10.6% of men. 
• Alleviating the care burden, which is the biggest barrier to women's participation in the labor force, emerges as a priority area for improvement.
• Productivity gains from future investments in automation and other digital technologies can drive economic growth and prosperity in an aging world. 
• As technological advancements accelerate, it is important for today's youth, particularly women, to improve their digital skills through lifelong learning.
• The proliferation of flexible working hours or part-time working practices can benefit not only elderly people with rather severe and more common health challenges, but also other workers who wish to remain in the workforce while performing care work.

The full report is available here.