Does an Aging Population Increase Inequality?
The paper reviews recent research on the impact of an aging population on the distribution of income. After briefly discussing the demographic conditions responsible for population aging, a short account is given of demographic trends in the industrialized world. In order to disentangle the many potential channels by which an aging society affects the dispersion of income, several levels of aggregation are distinguished. The paper differentiates between intra- and intergenerational issues, between direct and indirect demographic inequality effects, and between the distribution of current and lifetime income. It emphasizes the critical role of age-related redistributive tax-transfer systems, like public pension schemes and health care systems. Sources of distributional policy conflicts are identified at both the cross-section level and the lifetime level of income inequality. The institutional design of intergenerational burden sharing, individual disincentive reactions, shifts in age-income profiles related to cohort size, and politicoeconomic repercussions are shown to drive the relation between population aging and income distribution in distinct and partially opposite ways.
|Date of creation:||1995|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.vwl.uni-mannheim.de/institut/
More information through EDIRC
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.:
- Pestieau, Pierre, 1989.
"The Demographics of Inequality,"
Journal of Population Economics,
Springer, vol. 2(1), pages 3-24.
- Cowell, Frank A, 1984. "The Structure of American Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(3), pages 351-75, September.
- Barthold, Thomas A., 1993. "How Should We Measure Distribution?," National Tax Journal, National Tax Association, vol. 46(3), pages 291-99, September.
- Lawrence F. Katz & Kevin M. Murphy, 1991.
"Changes in Relative Wages, 1963-1987: Supply and Demand Factors,"
NBER Working Papers
3927, National Bureau of Economic Research, Inc.
- Katz, Lawrence F & Murphy, Kevin M, 1992. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 35-78, February.
- Katz, L.F. & Murphy, K.M., 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," Harvard Institute of Economic Research Working Papers 1580, Harvard - Institute of Economic Research.
- Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
- Paglin, Morton, 1975. "The Measurement and Trend of Inequality: A Basic Revision," American Economic Review, American Economic Association, vol. 65(4), pages 598-609, September.
- Gary S. Becker, .
"Family Economics and Macro Behavior,"
University of Chicago - Population Research Center
87-16, Chicago - Population Research Center.
- Ronald Lee, 1987. "Population dynamics of humans and other animals," Demography, Springer, vol. 24(4), pages 443-465, November.
- Rodgers, Gerry B., 1978. "Demographic determinants of the distribution of income," World Development, Elsevier, vol. 6(3), pages 305-318, March.
- Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
- Samuel Preston & Christine Himes & Mitchell Eggers, 1989. "Demographic Conditions Responsible for Population Aging," Demography, Springer, vol. 26(4), pages 691-704, November.
- Gary S. Becker & Robert J. Barro, .
"A Reformulation of the Economic Theory of Fertility,"
University of Chicago - Population Research Center
85-11, Chicago - Population Research Center.
- Becker, Gary S & Barro, Robert J, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 1-25, February.
- Gary S. Becker & Robert J. Barro, 1986. "A Reformulation of the Economic Theory of Fertility," NBER Working Papers 1793, National Bureau of Economic Research, Inc.
- Johnson, D. Gale, 1999. "Population and economic development," China Economic Review, Elsevier, vol. 10(1), pages 1-16.
- Dooley, Martin D & Gottschalk, Peter, 1984. "Earnings Inequality among Males in the United States: Trends and the Effect of Labor Force Growth," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 59-89, February.
- Formby, John P & Seaks, Terry G & Smith, W James, 1989. "On the Measurement and Trend of Inequality: A Reconsideration," American Economic Review, American Economic Association, vol. 79(1), pages 256-64, March.
- Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
- Klevmarken, N Anders, 1993. "Demographics and the Dynamics of Earnings," Journal of Population Economics, Springer, vol. 6(2), pages 105-22, May.
- Danziger, Sheldon & Haveman, Robert H & Smolensky, Eugene, 1977. "The Measurement and Trend of Inequality: Comment," American Economic Review, American Economic Association, vol. 67(3), pages 505-12, June.
- Lam, David, 1986. "The Dynamics of Population Growth, Differential Fertility, and Inequality," American Economic Review, American Economic Association, vol. 76(5), pages 1103-16, December.
- Cowell, Frank A, 1980. "On the Structure of Additive Inequality Measures," Review of Economic Studies, Wiley Blackwell, vol. 47(3), pages 521-31, April.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
When requesting a correction, please mention this item's handle: RePEc:mnh:vpaper:1058. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katharina Rautenberg)
If references are entirely missing, you can add them using this form.