Demographics And The Celtic Tiger
There are many explanations for what contributed to the economic growth of Ireland. One explanation that is being examined further is the link between demographic change and economic growth. In the past, it has been thought that demographic change does not effect economic growth, but in the context of Ireland's economic boom, this is not the case. In Ireland, the changing age structure has had important relevance in the economy. This means that as younger generations age and enter the work force, there will be an increase in production and thus an increase in economic growth.
In Ireland, there has always been a low mortality rate. There has also been an increase in the birth rate up until 1980 before methods of contraception were made legal. The combination of low death rates and high birth rates would have led to a dramatic growth in population, however, this growth was offset by significantly high rates of net emigration. Despite these factors, Ireland still experienced population growth. Once those who were born during this growth in population were old enough to enter the work force, production in Ireland increasesd.
