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Economic security arrangements in the context of population ageing in India

Author

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  • David E. Bloom
  • Ajay Mahal
  • Larry Rosenberg
  • Jaypee Sevilla

Abstract

The rapid ageing of India's population, in conjunction with migration out of rural areas and the continued concentration of the working population in the informal sector, has highlighted the need for better economic security arrangements for the elderly. Traditional family ties that have been key to ensuring a modicum of such security are beginning to fray, and increased longevity is making care of the elderly more expensive. As a result, the elderly are at increased risk of being poor or falling into poverty. In parallel with its efforts to address this issue, the Government of India and some of the Indian states have initiated an array of programmes for providing some level of access to health care or health insurance to the great majority of Indians who lack sufficient access. Formal‐sector workers have greater social security than those in the informal sector, but they only represent a small share of the workforce. Women are particularly vulnerable to economic insecurity. India's experience offers some lessons for other countries. Although there is space for private initiatives in the social security arena, it is clear that most such efforts will need to be tax‐financed. The role that private providers can play is substantial, even when most funding comes from public sources, but such activity will face greater challenges as more individuals seek benefits. India has also shown that implementation can often be carried out well by states using central government funds, with a set of advantages and disadvantages that such decentralization brings. Finally, India's experience with implementation can offer guidance on issues such as targeting, the use of information technology in social security systems, and human resource management.

Suggested Citation

  • David E. Bloom & Ajay Mahal & Larry Rosenberg & Jaypee Sevilla, 2010. "Economic security arrangements in the context of population ageing in India," International Social Security Review, John Wiley & Sons, vol. 63(3‐4), pages 59-89, July.
  • Handle: RePEc:wly:intssr:v:63:y:2010:i:3-4:p:59-89
    DOI: 10.1111/j.1468-246X.2010.01370.x
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    References listed on IDEAS

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    1. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367.
    2. Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December.
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    Cited by:

    1. David E. Bloom & David Canning & Günther Fink, 2010. "Implications of population ageing for economic growth," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(4), pages 583-612, Winter.
    2. D Rajasekhar & Santosh Kesavan & R Manjula, 2017. "Contributory Pension Schemes for the Poor: Issues and Ways Forward," Working Papers id:12097, eSocialSciences.
    3. Rajasekhar, D. & Kesavan, Santosh & Manjula, R., 2016. "Contributory pension schemes for the poor: Issues and ways forward," Working Papers 377, Institute for Social and Economic Change, Bangalore.
    4. Khan, Anam & Deb, Amrita, 2021. "Family as a source of risk and resilience among adults with a history of childhood adversity," Children and Youth Services Review, Elsevier, vol. 121(C).
    5. Agarwal, Arunika & Lubet, Alyssa & Mitgang, Elizabeth & Mohanty, Sanjay & Bloom, David E., 2016. "Population Aging in India: Facts, Issues, and Options," IZA Discussion Papers 10162, Institute of Labor Economics (IZA).
    6. David E. Bloom, 2011. "Population Dynamics in India and Implications for Economic Growth," PGDA Working Papers 6511, Program on the Global Demography of Aging.
    7. Zhiwei Liu & Yonglei Fang & Lei Ma, 2022. "A Study on the Impact of Population Age Structure Change on Economic Growth in China," Sustainability, MDPI, vol. 14(7), pages 1-15, March.
    8. Premchand Dommaraju, 2015. "One-person households in India," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(45), pages 1239-1266.
    9. Mitchell, Olivia S. & Mukherjee, Anita, 2017. "Assessing the demand for micropensions among India’s poor," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 30-40.
    10. Jian Zhou & Jingjing Deng & Li Li & Shuang Wang, 2023. "The Demographic Dividend or the Education Dividend? Evidence from China’s Economic Growth," Sustainability, MDPI, vol. 15(9), pages 1-17, April.
    11. Tannistha Samanta & Feinian Chen & Reeve Vanneman, 2015. "Living Arrangements and Health of Older Adults in India," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 70(6), pages 937-947.
    12. Channon, Andrew Amos & Andrade, Monica Viegas & Noronha, Kenya & Leone, Tiziana & Dilip, T.R., 2012. "Inpatient care of the elderly in Brazil and India: Assessing social inequalities," Social Science & Medicine, Elsevier, vol. 75(12), pages 2394-2402.
    13. Francisco Perez-Arce & Maria Prados & Erik Meijer & Jinkook Lee, 2018. "Social Security Coverage around the World: The Case of China and Mexico," Working Papers wp395, University of Michigan, Michigan Retirement Research Center.
    14. Asri, Viola & Michaelowa, Katharina & Panda, Sitakanta & Paul, Sourabh B., 2022. "The pursuit of simplicity: Can simplifying eligibility criteria improve social pension targeting?," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 820-846.
    15. Michal Isaacson & Ashwin Tripathi & Tannistha Samanta & Lisa D’Ambrosio & Joseph Coughlin, 2020. "Giving Voice to the Environment as the Silent Partner in Aging: Examining the Moderating Roles of Gender and Family Structure in Older Adult Wellbeing," IJERPH, MDPI, vol. 17(12), pages 1-19, June.
    16. Kulbhushan Balooni & Kausik Gangopadhyay & Sudeep Turakhia & R.G. Karthik, 2012. "Challenges in the Sustainability of a Targeted Health Care Initiative in India," IIM Kozhikode Society & Management Review, , vol. 1(1), pages 21-32, January.
    17. Ajay Mahal & Meena Seshu & Shashikant Mane & Shanti Lal, 2012. "Old Age Financial Security in the Informal Sector: Sex Work in India," Journal of South Asian Development, , vol. 7(2), pages 183-202, October.

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