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Measuring the lifecycle impact of welfare state policies in the face of ageing

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  • Spielauer, Martin
  • Horvath, Thomas
  • Fink, Marian
  • Abio, Gemma
  • Souto, Guadalupe
  • Patxot, Ció
  • Istenič, Tanja

Abstract

This research investigates how the interplay between demographics, economics and welfare state transfers affects the impact of the ageing process on income redistribution, at both intra and intergenerational levels. We combine different EU comparable data sources with microsimulation techniques in order to measure how agents resort to the three available resource allocation devices over their lifecycle (asset market and public and private transfers), extending the National Transfer Accounts (NTA) methodology at the micro level. Agents are heterogeneous in age, gender, education level and family type. Simulating population dynamics at the micro level allows us to capture not only the ageing process but also the educational transition and the change in family structures occurring in parallel. The resulting projection model allows us to simulate the lifetime net transfers received by individuals from the government and the family, and to compute the adjustment needed to keep the sustainability of the welfare system.

Suggested Citation

  • Spielauer, Martin & Horvath, Thomas & Fink, Marian & Abio, Gemma & Souto, Guadalupe & Patxot, Ció & Istenič, Tanja, 2022. "Measuring the lifecycle impact of welfare state policies in the face of ageing," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 1-25.
    • Handle: RePEc:eee:ecanpo:v:75:y:2022:i:c:p:1-25
    DOI: 10.1016/j.eap.2022.05.002
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    Cited by:

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    4. Zhan, Peng & Zhang, Anqi & Ma, Xinxin, 2023. "Public pension policy, substitution income, and poverty reduction: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1138-1154.

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    More about this item

    Keywords

    Intergenerational transfers; Family transfers; Education; Demographic change; National Transfer Accounts; Generational Accounting;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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