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Demographic Characteristics 1. Human capital has characteristics that are either achieved (education, occupation, etc.

) or ascribed (race, sex, etc.) 2. Education is the most important determinant of demographic trends, as it affects fertility, mortality, and migration. 3. abor force participation is increasing in the tertiary sector in the !.". economy at the expense of primary activities, particularly agriculture. #. $er capita income is the most familiar index of economic development that reflects residents% &ell'being and capacity to consume. Economic Growth and Development 1. (he three'corned debate over population gro&th and development centers on (a) the need for population by nationalists, (b) the )arxist vie& that population gro&th per se does not hamper economic development, but rather un*ust social and economic institution, and (c) the neo')althusians that population gro&th can &ipe out economic gains. 2. Economic forces include the need for population to create economies of scale that increase efficiency. Ho&ever, excessive population gro&th &ill exhaust resources and reduce living standards. 3. (he carrying capacity, or population si+e that can be maintained indefinitely, depends on level of living chosen by the country. #. )odern gro&th theory emphasi+es the roles of capital formation and ne& technology to achieve higher carrying capacity for an economy. ,. (he age structure of population affects the si+e of the labor force and the saving rate necessary for investment.

Demographic Forecasting at the Firm and City Level 1. -irms also have a life span.birth, gro&th, maturity, die, and migrate. 2. /rgani+ation ecology or firmography focuses on the advantages of geographic isolation (avoiding competition) versus proximity (agglomeration economies) in the location and survival of a business firm. 3. -irms use target mar0eting base on 12" to profile mar0et segments for a particular business. (Examples in pp. 34'51) #. (he demographics of the firm are being affected by t&o ma*or factors.technology and generation. a. (echnology is restructuring or reengineering the &or0place environment to create the flexible economy. b. 1enerational is the role of baby boomers on consumer spending, labor productivity, and political po&er. ,. 6orporations are no longer responsible for a &or0er%s life, career, and retirement, but responsibility is shifted to the individual. 7. "table, hierarchical families are giving &ay to mobile, multi' career, fast changing, flexible families in much the same &ay in order to achieve in the *ob mar0et. 4. -irms and households are pro*ected to increasingly locate in excerbs proximate to larger metropolitan areas if they are to reduce the cost of living and increase the 8uality of life. 3. 6ustomi+ation and flexibility to individual%s demands and needs &ill be 0eys to a companies success re8uiring creativity in products and services. "maller, entrepreneurial firms &ill create more *obs than larger firms. 5. (he customi+ed9flexible economy is the rough opposite of the standardi+ed economy of the past. 2ndividual%s &or0 is small, self'managing teams focused on a particular need or customer problem. arge inventory bloats are reduced by

faster response to customers in niche mar0ets (Example of :ell 6omputer 6orporation) Demographics for City Planning 1. 6ities need to begin &ith a regional gro&th forecast (;1-) based on 12" to determine level and location of population, the need and location of schools, hospitals, fire and police protection, and se&age and &ater treatment plants, +oning for land uses, transportation plans, pro*ected housing needs, pro*ected energy demands, air 8uality, etc. 2. $lanning see0s to coordinate regional goals and policies &ith general plan < development patterns sub*ect to intergovernmental revie& procedures.
Demographic Techniques