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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.

Suggested Citation

  • Tim Krieger & Jens Ruhose, 2011. "“Honey, I shrunk the kids’ benefits!” — Revisiting intergenerational conflict in OECD countries," Working Papers CIE 46, Paderborn University, CIE Center for International Economics.
  • Handle: RePEc:pdn:ciepap:46
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    Cited by:

    1. Jäger, Philipp & Schmidt, Torsten, 2016. "The political economy of public investment when population is aging: A panel cointegration analysis," European Journal of Political Economy, Elsevier, vol. 43(C), pages 145-158.
    2. Jens Ruhose, 2015. "Microeconometric Analyses on Economic Consequences of Selective Migration," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.

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    More about this item

    Keywords

    Intergenerational Conflict; Family Benefits; Population Ageing; Education Expenditure; Voting; Retirement Income Shock.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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