An age perspective on economic well-being and social protection in nine OECD countries
AbstractThis paper quantifies the economic well-being of different age groups and the extent of their reliance on incomes from public and private sources. The aim is to establish how social benefits, and the taxes needed to finance them, affect income levels and disparities across different age groups. Results are compared across nine OECD countries (Finland, France, Germany, Italy, Luxembourg, Norway, Sweden, United Kingdom and United States) using household micro-data and microsimulation models to illustrate the influence of market income patterns, household structures and social protection measures on the income distribution among and between different age groups. We use information from the late 1990s to establish a distributional baseline that refers to an early phase of the projected increase in dependency ratios and also pre-dates some of the major reforms that are introduced to address these. Results even for this period show that social protection was already largely old-age protection, with those aged 65 and over typically receiving almost three times the (net) cash transfers of the average person. In most countries, the incidence of low incomes was nevertheless higher among old-age individuals than for the population as a whole. We argue, however, that the cross-country evidence suggests some scope for re-balancing social protection spending without necessarily compromising distributional objectives.
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Bibliographic InfoPaper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number EM3/06.
Date of creation: 01 Sep 2006
Date of revision:
Publication status: published
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Other versions of this item:
- Dang, Thai-Thanh & Immervoll, Herwig & Mantovani, Daniela & Orsini, Kristian & Sutherland, Holly, 2006. "An Age Perspective on Economic Well-Being and Social Protection in Nine OECD Countries," IZA Discussion Papers 2173, Institute for the Study of Labor (IZA).
- Thai-Thanh Dang & Herwig Immervoll & Daniela Mantovani & Kristian Orsini & Holly Sutherland, 2006. "An Age Perspective on Economic Well-Being and Social Protection in Nine OECD Countries," OECD Social, Employment and Migration Working Papers 34, OECD Publishing.
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gottschalk, Peter & Smeeding, Timothy M., 2000. "Empirical evidence on income inequality in industrialized countries," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 5, pages 261-307 Elsevier.
- Holly Sutherland & Miles Corak & Christine Lietz & UNICEF Innocenti Research Centre, 2005.
"The Impact of Tax and Transfer Systems on Children in the European Union,"
Innocenti Working Papers
inwopa05/30, UNICEF Innocenti Research Centre.
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- Corak, Miles & Lietz, Christine & Sutherland, Holly, 2005. "The Impact of Tax and Transfer Systems on Children in the European Union," IZA Discussion Papers 1589, Institute for the Study of Labor (IZA).
- Virginia Hernanz & Franck Malherbet & Michele Pellizzari, 2004. "Take-Up of Welfare Benefits in OECD Countries: A Review of the Evidence," OECD Social, Employment and Migration Working Papers 17, OECD Publishing.
- Sutherland, Holly, 2001. "EUROMOD: an integrated European benefit-tax model: final report," EUROMOD Working Papers EM9/01, EUROMOD at the Institute for Social and Economic Research.
- Dekkers, Gijs, 2008. "Are the old poor? A discussion and some cursory evidence," MPRA Paper 29436, University Library of Munich, Germany.
- Figari, Francesco & Matsaganis, Manos & Sutherland, Holly, 2011. "The financial well-being of older people in Europe and the redistributive effects of minimum pension schemes," EUROMOD Working Papers EM7/11, EUROMOD at the Institute for Social and Economic Research.
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