Abstract The degree of aging in China is increasing and it plays an important role in the evolution of employment structure of service industry. In this paper, a general equilibrium framework is constructed on the basis of a Two-stage Overlapping Generation Model. Under the assumption of full employment and commodity market equilibrium, it is found that aging will affect the employment structure of service industry through demand effect, productivity effect and forcing enterprises to change their mode of production. Based on the above conclusion and the inter-provincial panel data of China from 2005 to 2017, this paper finds that the above three effects are significant by using method of different service industry classifications. However, due to the characteristics of population flow, regional cost differences and uneven technology distribution in China, the aging shows strong regional and industrial heterogeneity.In Generally, although aging has a negative impact on economy due to the decrease of labor supply, it has also promoted the structural upgrading of China’s service industry.
2021, Vol. 38 
