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Over the next 50 years, population aging will contribute to a dramatic decline in the European working age population. One important question for policy makers is to what extent an increase in labour force participation of migrants, their descendants, and women can compensate for the decline in labour supply. Thus it is relevant to know more about the factors which can encourage participation of these groups. In this report [the authors] examine the employment of second generation (children of immigrants) Turkish and young adult women from the majority population. [The authors] focus on the Turkish group since it is the largest single origin country group who also settled in different European countries allowing for examining differences among the second generation across countries of residence by using unique data allowing for this for the first time.

This report covers four European countries (Germany, the Netherlands, France, and Sweden) in which the largest share of the total Turkish population in Europe live. [The authors] give special attention to the effect of motherhood on employment. [The] findings show that policy and institutions matter for the employment of all women in society, irrespective of migrant origin. Still, levels of employment are lower for the Turkish second generation compared to women from the majority group in all countries. Being a mother has a negative impact on employment, but [the authors] do not find this association to vary by origin. Furthermore [the authors] find clear differences across the countries studied but again these differences are similar for women of the majority population and those of Turkish origin. Although [the authors] are unable to pinpoint the exact policies and institutional arrangements it seems to be the case that these are related to policies across the life course starting from educational to family policies. Findings make clear that policymakers must give special attention to the unique economic position and potential of women in general and the growing share of children of immigrants among them, whose employment behaviours will be essential to bolstering the European labour force in the future.

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Demographic change is perceived as a threat for wealth rather than a challenge in Germany. The debate on skilled labor shortage is a proof for this view. The paper surveys the most important German studies on skilled labor shortage. Meanwhile, a consensus on solutions has emerged in academia. Increasing the participation rates of elderly people and women and facilitating qualified immigration as well as improving productivity are the mainstream recommendations. The paper provides descriptive statistical evidence that temporary agency work could contribute to solving the skilled labor shortage problem via these four channels. However, it is far from clear that productivity increases are the most important and most sustainable way out of the demographic trap. Against this background the government’s demographic strategy is assessed. It turns out that the government has no coherent strategy yet to solve the demographic issues ahead.

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