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“Honey, I shrunk the kids’ benefits!” — Revisiting intergenerational conflict in OECD countries

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  • Tim Krieger

    ()
    (University of Paderborn)

  • Jens Ruhose

    ()
    (Ifo Institut)

Abstract

Intergenerational conflicts may arise when interests of different age groups do not align. We examine cross-country data to find evidence for this conflict in OECD countries. We derive our results from a FGLS estimation model, which is complemented by a System-GMM estimation. Data covers a panel of 22 OECD countries over the time period 1985-2005. We find little support for intergenerational conflict in general; however, those who are close to (statutory) retirement age dislike public expenditure for families and education because, once they retire, they have to adapt to lower retirement income levels compared to previous work income. This effect lasts for a transitory period only.

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Paper provided by University of Paderborn, CIE Center for International Economics in its series Working Papers CIE with number 46.

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Length: 44 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:pdn:ciepap:46

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Keywords: Intergenerational Conflict; Family Benefits; Population Ageing; Education Expenditure; Voting; Retirement Income Shock.;

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