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Abstract
Population ageing has become a major global issue and challenge in recent years. Taiwan is one of the rapidly ageing countries and is expected to enter the stage “aged society” by 2017. However, insufficient attention has been paid to challenges of population ageing in Taiwan. As a result, it is important for the Taiwanese government to take timely actions to adapt to population ageing. The objective of this article is to analyze the effects and implications of population ageing on the labor market and productivity in Taiwan. In this study, the long-term trend and characteristics in population ageing and its implications and impacts on the productivity will be discussed, and the current existing policies will be provided. Finally, some policy recommendations will be proposed aiming at a more sustainable economy and a better society.