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In the past, rapid population and economic growth have enabled California to benefit from its demographic and economic diversity. Today that diversity increases while growth slows down. Recent trends show an aging population, a decline in population growth, a reduction in the number of migrants from other states, and a dramatic increase in foreign-born residents. California women are having fewer children — primarily because of their increasing participation in the labor force — although fertility rates vary by ethnic group. Changes in fertility, migration, and immigration are restructuring the state's age and ethnic profiles, and these changes will help shape the state's policy agenda for the rest of the century. Impacts will be felt in education, child care, health services, the labor force, tax revenues, and public services expenditures.

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