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Ageing and the welfare state: securing sustainability

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  • Volker Meier
  • Martin Werding

Abstract

Over the next four decades, increasing old-age dependency ratios will exert an enormous upward pressure on welfare spending in most developed countries. As this is mainly due to existing unfunded public pension schemes, many countries have embarked on far-reaching reforms in this area, strengthening actuarial fairness, modifying indexation rules, adding elements of pre-funding, and, last but not least, attempting to extend the period of economic activity. Efforts to contain costs may also be relevant with regard to public expenditure on health and long-term care but, thus far, no country has started to really deal with these issues. Still, some countries have made substantial progress in securing the long-term sustainability of their welfare systems. What remains to be considered is re-constructing the system of intergenerational transactions as a potential way of removing disincentives to raise children and invest in their human capital in the long run. Copyright 2010, Oxford University Press.

Suggested Citation

  • Volker Meier & Martin Werding, 2010. "Ageing and the welfare state: securing sustainability," Oxford Review of Economic Policy, Oxford University Press, vol. 26(4), pages 655-673, Winter.
  • Handle: RePEc:oup:oxford:v:26:y:2010:i:4:p:655-673
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    File URL: http://hdl.handle.net/10.1093/oxrep/grq031
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    Cited by:

    1. Markus Ahlborn & Rainer Schweickert, 2018. "Public debt and economic growth – economic systems matter," International Economics and Economic Policy, Springer, vol. 15(2), pages 373-403, April.
    2. David Tordrup & Aris Angelis & Panos Kanavos, 2013. "Preferences on Policy Options for Ensuring the Financial Sustainability of Health Care Services in the Future: Results of a Stakeholder Survey," Applied Health Economics and Health Policy, Springer, vol. 11(6), pages 639-652, December.
    3. Martin Werding, 2016. "One Pillar Crumbling, the Others Too Short: Old-Age Provision in Germany," National Institute Economic Review, National Institute of Economic and Social Research, vol. 237(1), pages 13-21, August.
    4. Gál, Róbert Iván & Törzsök, Árpád, 2015. "Háztartás-formálódás a MIDAS modellben
      [Household formation in the MIDAS-HU model]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1343-1358.
    5. Werding, Martin & McLennan, Stuart, 2011. "International portability of health-cost coverage : concepts and experience," Social Protection and Labor Policy and Technical Notes 63929, The World Bank.
    6. repec:bla:rdevec:v:21:y:2017:i:3:p:909-934 is not listed on IDEAS
    7. Marga Peeters & Loek Groot, 2012. "A Global View On Demographic Pressure And Labour Market Participation," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 8(2), pages 165-194, June.
    8. repec:bla:glopol:v:8:y:2017:i::p:7-22 is not listed on IDEAS
    9. Viktor von Wyl & Konstantin Beck, 2014. "Risk adjustment in aging societies," Health Economics Review, Springer, vol. 4(1), pages 1-14, December.
    10. Martin Werding & Marko Primorac, 2016. "Old-Age Provision in Transition: The Case of Croatia," CESifo Working Paper Series 5761, CESifo Group Munich.
    11. repec:eee:hapoch:v1_381 is not listed on IDEAS
    12. Martin Karlsson & Florian Klohn, 2014. "Testing the red herring hypothesis on an aggregated level: ageing, time-to-death and care costs for older people in Sweden," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(5), pages 533-551, June.

    More about this item

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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