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Financing young and elderly dependents: the case of Indian public policy

  • Laishram Ladusingh

    (Professor of Demography and Statistics, International Institute for Population Sciences, Mumbai- 400088, India)

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    In this paper the author explores the monetary benefits of young and elderly dependents under the public policy that introduced age into the National Accounts of India, the framework of the National Transfer Accounts. The results of the study indicate that the net monetary gain of young dependents is more than seven times higher than that of elderly dependents. It is suggested that there is a need to reorient the country’s fiscal policy in order to meet the demand for sustainable social security in the face of impending population ageing in the decades ahead. A desirable policy strategy would be to convert all social assistance programmes into a single long-term national social security programme, the scope of which would encompass various aspects of intergenerational equity, raise the level of entitlement to match actual need and make national social security a universal programme.

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    File URL: http://www.unescap.org/sites/default/files/chap-5-Ladusingh.pdf
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    Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

    Volume (Year): 20 (2013)
    Issue (Month): 1 (June)
    Pages: 121-143

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    Handle: RePEc:unt:jnapdj:v:20:y:2013:i:1:p:121-143
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    1. Crawford, Vincent P & Lilien, David M, 1981. "Social Security and the Retirement Decision," The Quarterly Journal of Economics, MIT Press, vol. 96(3), pages 505-29, August.
    2. Ladusingh, Laishram & Narayana, M. R., 2011. "Demographic Dividends for India: Evidence and Implications Based on National Transfer Accounts," ADB Economics Working Paper Series 292, Asian Development Bank.
    3. Panagariya, Arvind, 2008. "India: The Emerging Giant," OUP Catalogue, Oxford University Press, number 9780195315035, March.
    4. Andrew Mason & Ronald Lee & An-Chi Tung & Mun-Sim Lai & Tim Miller, 2009. "Population Aging and Intergenerational Transfers: Introducing Age into National Accounts," NBER Chapters, in: Developments in the Economics of Aging, pages 89-122 National Bureau of Economic Research, Inc.
    5. Acharya, Shankar, 2008. "Essays on Macroeconomic Policy and Growth in India," OUP Catalogue, Oxford University Press, number 9780195695878, March.
    6. Joe Ruggeri & Yang Zou, 2007. "The fiscal burden of rising dependency ratios," Population Research and Policy Review, Springer, vol. 26(2), pages 185-201, April.
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