Relationships among migration, ageing, and economic development have attracted researchers to this area. In this paper we examine a number of possible relationships among these three variables, using the aggregate data at the district level in Indonesia. A simultaneous equation model is employed to find out the causality of the relationships among ageing, in-migration, and development in Indonesia. Our study shows that there is one way, rather than two-way relationships among the three endogenous variables. First, higher economic development seems to have attracted in-migration, and not vice versa. Second, fertility has the most important effect on ageing process. On the other hand, we did not find that the old population structure of a district might have attracted in-migration. Third, ageing population might be a burden for economic development, when we do not include contribution from oil and gas.
See paper here.