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Age-Specific Income Trends in Europe: The Role of Employment, Wages, and Social Transfers

Author

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  • Bernhard Hammer

    (Institute of Statistics and Mathematical Methods in Economics and Wittgenstein Centre for Demography and Global Human Capital (IIASA, OeAW, University of Vienna))

  • Sonja Spitzer

    (University of Vienna, Department of Demography, Wittgenstein Centre for Demography and Global Human Capital (IIASA, OeAW, University of Vienna))

  • Alexia Prskawetz

    (Institute of Statistics and Mathematical Methods in Economics and Wittgenstein Centre for Demography and Global Human Capital (IIASA, OeAW, University of Vienna))

Abstract

This study analyses age-specific differences in income trends in nine European countries. Based on data from National Accounts and the European Union Statistics on Income and Living Conditions, we quantify age-specific changes in income between 2008 and 2017 and decompose these changes into employment, wages, and public transfer components. Results show that income of the younger age groups stagnated or declined in most countries since 2008, while income of the older population increased. The decomposition analysis indicates that the main drivers of the diverging trends are higher employment among the older population and a strong increase in public pensions, especially for women.

Suggested Citation

  • Bernhard Hammer & Sonja Spitzer & Alexia Prskawetz, 2022. "Age-Specific Income Trends in Europe: The Role of Employment, Wages, and Social Transfers," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 525-547, July.
    • Handle: RePEc:spr:soinre:v:162:y:2022:i:2:d:10.1007_s11205-021-02838-w
    DOI: 10.1007/s11205-021-02838-w
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    Cited by:

    1. Daniël van Wijk, 2024. "Higher incomes are increasingly associated with higher fertility: Evidence from the Netherlands, 2008–2022," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 51(26), pages 809-822.
    2. Bernhard Hammer & Michael Christl & Silvia De Poli, 2020. "Redistribution across Europe: How much and to whom?," Working Papers 593, ECINEQ, Society for the Study of Economic Inequality.
    3. Hammer, Bernhard & Christl, Michael & De Poli, Silvia, 2023. "Public redistribution in Europe: Between generations or income groups?," The Journal of the Economics of Ageing, Elsevier, vol. 24(C).

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