IDEAS home Printed from https://ideas.repec.org/a/spr/decisn/v49y2022i3d10.1007_s40622-022-00325-w.html
   My bibliography  Save this article

Intergenerational income distribution before and after the great recession: winners and losers

Author

Listed:
  • Filip Chybalski

    (Lodz University of Technology)

Abstract

Ageing process may affect intergenerational relations in different ways, including income distribution. Simultaneously, the global economy has undergone various crises. An important question is whether these crises impact the nexus between ageing and intergenerational income distribution. Finding an answer to this question is difficult in the literature; although the crisis-income inequality nexus is quite often investigated, this is not in the intergenerational context. This paper attempts to solve such puzzles using data covering 13 OECD countries in the period 1995–2018. The findings show that the relationship between the age structure of the population and intergenerational income distribution before and after the Great Recession of 2007–2009 was quite different. Actually, the Great Recession seems to have triggered this nexus in such a way that the elderly won the intergenerational income game in the aftermath of the crisis; however, the working-age and younger cohorts took a rematch later. The results obtained may support the political decision-making how to cope with economic crises, including the present COVID-19 pandemic and its impact on the economy and society, so as to treat different generations fair.

Suggested Citation

  • Filip Chybalski, 2022. "Intergenerational income distribution before and after the great recession: winners and losers," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(3), pages 311-327, September.
    • Handle: RePEc:spr:decisn:v:49:y:2022:i:3:d:10.1007_s40622-022-00325-w
    DOI: 10.1007/s40622-022-00325-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40622-022-00325-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40622-022-00325-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Noelia Bernal & Frederic Vermeulen, 2014. "The Impact of an Increase in the Legal Retirement Age on the Effective Retirement Age," De Economist, Springer, vol. 162(2), pages 115-145, June.
    2. Montén, Anna & Thum, Marcel, 2010. "Ageing municipalities, gerontocracy and fiscal competition," European Journal of Political Economy, Elsevier, vol. 26(2), pages 235-247, June.
    3. Xiujian Peng & Yinhua Mai, 2013. "Population Ageing, Retirement Age Extension and Economic Growth in China A Dynamic General Equilibrium Analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-237, Victoria University, Centre of Policy Studies/IMPACT Centre.
    4. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    5. Jos Alberto Fuinhas & Ant nio Cardoso Marques & Alcino Pinto Couto, 2015. "Oil-Growth Nexus in Oil Producing Countries: Macro Panel Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 148-163.
    6. Bordo, Michael D. & Meissner, Christopher M., 2012. "Does inequality lead to a financial crisis?," Journal of International Money and Finance, Elsevier, vol. 31(8), pages 2147-2161.
    7. Gunes Gokmen & Annaig Morin, 2019. "Inequality in the aftermath of financial crises: some empirical evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 26(19), pages 1558-1562, November.
    8. Staubli, Stefan & Zweimüller, Josef, 2013. "Does raising the early retirement age increase employment of older workers?," Journal of Public Economics, Elsevier, vol. 108(C), pages 17-32.
    9. Grabka, Markus M., 2015. "Income and Wealth Inequality after the Financial Crisis: The Case of Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 42(2), pages 371-390.
    10. Tim Callan & Brian Nolan & Claire Keane & Michael Savage & John Walsh, 2014. "Crisis, response and distributional impact: the case of Ireland," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-17, December.
    11. repec:cai:poeine:pope_203_0447 is not listed on IDEAS
    12. Michael Kumhof & Romain Rancière & Pablo Winant, 2015. "Inequality, Leverage, and Crises," American Economic Review, American Economic Association, vol. 105(3), pages 1217-1245, March.
    13. repec:hal:pseose:halshs-01207208 is not listed on IDEAS
    14. Emanuele Ferragina, 2019. "The political economy of family policy expansion," Review of International Political Economy, Taylor & Francis Journals, vol. 26(6), pages 1238-1265, November.
    15. Jenkins, Stephen P. & Brandolini, Andrea & Micklewright, John & Nolan, Brian (ed.), 2012. "The Great Recession and the Distribution of Household Income," OUP Catalogue, Oxford University Press, number 9780199671021.
    16. Agnieszka Chło´n-Domi´nczak & Anita Abramowska-Kmon & Irena E. Kotowska & Wojciech Łatkowski & Paweł Strzelecki, 2019. "Welfare state and the age distribution of public consumption and public transfers in the EU countries," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 17(1), pages 071-097.
    17. Vincenzo Atella & Lorenzo Carbonari, 2017. "Is Gerontocracy Harmful for Growth? a Comparative Study of Seven European Countries," Journal of Applied Economics, Taylor & Francis Journals, vol. 20(1), pages 141-168, May.
    18. Kirschenmann, Karolin & Malinen, Tuomas & Nyberg, Henri, 2016. "The risk of financial crises: Is there a role for income inequality?," Journal of International Money and Finance, Elsevier, vol. 68(C), pages 161-180.
    19. Michael Kumhof & Romain Rancière & Pablo Winant, 2015. "Inequality, Leverage, and Crises," Post-Print halshs-01511070, HAL.
    20. Michele Raitano, 2016. "Income Inequality in Europe Since the Crisis," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 51(2), pages 67-72, March.
    21. Nihat Taș & Ali Hepșen & Emrah Önder, 2013. "Analyzing Macroeconomic Indicators of Economic Growth using Panel Data," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 2(3), pages 1-4.
    22. Fabian T. Pfeffer & Sheldon Danziger & Robert F. Schoeni, 2013. "Wealth Disparities Before and After the Great Recession," The ANNALS of the American Academy of Political and Social Science, , vol. 650(1), pages 98-123, November.
    23. Edward Wolff, 2013. "The Asset Price Meltdown, Rising Leverage, and the Wealth of the Middle Class," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(2), pages 333-342.
    24. Nancy Folbre & Douglas Wolf, 2013. "The Intergenerational Welfare State," Population and Development Review, The Population Council, Inc., vol. 38, pages 36-51, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Balcilar, Mehmet & Berisha, Edmond & Gupta, Rangan & Pierdzioch, Christian, 2021. "Time-varying evidence of predictability of financial stress in the United States over a century: The role of inequality," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 87-92.
    2. Woo, Jaejoon, 2023. "Financial crises and inequality: New evidence from a panel of 17 advanced economies," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    3. Georgescu, Oana-Maria & Martín, Diego Vila, 2021. "Do macroprudential measures increase inequality? Evidence from the euro area household survey," Working Paper Series 2567, European Central Bank.
    4. Bodea, Cristina & Houle, Christian & Kim, Hyunwoo, 2021. "Do financial crises increase income inequality?," World Development, Elsevier, vol. 147(C).
    5. Gu, Xinhua & Tam, Pui Sun & Lei, Chun Kwok, 2021. "The effects of inequality in the 1997–98 Asian crisis and the 2008–09 global tsunami: The case of five Asian economies," Journal of International Money and Finance, Elsevier, vol. 110(C).
    6. Remi Bazillier & Boris Najman, 2017. "Labour and Financial Crises: Is Labour Paying the Price of the Crisis?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(1), pages 55-76, March.
    7. Thomas Fischer, 2017. "Can Redistribution by Means of a Progressive Labor Income-Taxation Transfer System Increase Financial Stability?," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 20(2), pages 1-3.
    8. Rémi Bazillier & Jérôme Héricourt & Samuel Ligonnière, 2017. "Structure of Income Inequality and Household Leverage: Theory and Cross-Country Evidence," Working Papers 2017-01, CEPII research center.
    9. Thanh Cong Nguyen, 2022. "The effects of financial crisis on income inequality," Development Policy Review, Overseas Development Institute, vol. 40(6), November.
    10. Pascal Paul, 2018. "Historical Patterns of Inequality and Productivity around Financial Crises," 2018 Meeting Papers 583, Society for Economic Dynamics.
    11. Mehmet Akif Destek & Bilge Koksel, 2019. "Income inequality and financial crises: evidence from the bootstrap rolling window," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-23, December.
    12. Bellettini, Giorgio & Delbono, Flavio & Karlström, Peter & Pastorello, Sergio, 2019. "Income inequality and banking crises: Testing the level hypothesis directly," Journal of Macroeconomics, Elsevier, vol. 62(C).
    13. Thomas Hauner, 2020. "Aggregate wealth and its distribution as determinants of financial crises," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 319-338, September.
    14. Pascal Paul, 2023. "Historical Patterns of Inequality and Productivity around Financial Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(7), pages 1641-1665, October.
    15. Rym Ayadi & Sami B. Naceur & Sandra Challita, 2023. "Does income inequality really matter for credit booms?," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 52(1), February.
    16. Bazillier, Rémi & Héricourt, Jérôme & Ligonnière, Samuel, 2021. "Structure of income inequality and household leverage: Cross-country causal evidence," European Economic Review, Elsevier, vol. 132(C).
    17. Oliver Denk & Boris Cournède, 2015. "Finance and income inequality in OECD countries," OECD Economics Department Working Papers 1224, OECD Publishing.
    18. Jérôme Creel & Paul Hubert & Fabien Labondance, 2023. "Credit, banking fragility, and economic performance," Oxford Economic Papers, Oxford University Press, vol. 75(2), pages 553-573.
    19. Olivier Coibion & Yuriy Gorodnichenko & Marianna Kudlyak & John Mondragon, 2014. "Does Greater Inequality Lead to More Household Borrowing? New Evidence from Household Data," NBER Working Papers 19850, National Bureau of Economic Research, Inc.
    20. Fierro, Luca Eduardo & Giri, Federico & Russo, Alberto, 2023. "Inequality-constrained monetary policy in a financialized economy," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 366-385.

    More about this item

    Keywords

    Income distribution; Inequality; Public policy; Great recession; Intergenerational relations; Ageing;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:decisn:v:49:y:2022:i:3:d:10.1007_s40622-022-00325-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.