The public reallocation of resources across age: A comparison of Austria and Sweden
There is a strong interdependency between public transfers and the shape of the economic life-cycle. Austria and Sweden are very similar economies in terms of production, income and the size of the public sector. There are however remarkable differences in the design of public transfers, their distribution over age-groups and consequently in the shape of the average economic life-cycle: One of the most remarkable differences is the earlier labour force exit age in Austria. The period of active labour force participation is consequently more compressed in Austria, leading to higher contributions to the public transfer system for the age-groups 20-45 and to a higher share of public transfers directed to the elderly. Using economic dependency ratios we show that the sustainability of the public transfer system depends less on its size than on its design: The Swedish system collects the contributions from a wider range of age-groups, transfers a smaller share to the elderly and provides more support to younger generations, supporting them to invest in own children. These characteristics have a positive effect on the sustainability of the Swedish system: Although in Sweden there is a larger share of the population in the age-group 60+, the total economic dependency of the elderly is lower.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Wiedner Hauptstraße 8-10, 1040 Wien|
Phone: 0043 1 58801 10531
Fax: 0043 1 58801 105399
Web page: http://www.econ.tuwien.ac.at/
More information through EDIRC
References listed on IDEAS
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.:
- Forsell, Charlotte & Hallberg, Daniel & Lindh, Thomas & Öberg, Gustav, 2008. "Intergenerational public and private sector redistribution in Sweden 2003," Arbetsrapport 2008:4, Institute for Futures Studies.
When requesting a correction, please mention this item's handle: RePEc:zbw:tuweco:052012. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.