The Distributional Impact of Population Ageing

Omar A Aziz, Christopher Ball, John Creedy and Jesse Eedrah ()
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Jesse Eedrah: The Treasury, https://treasury.govt.nz

No 13/13, Treasury Working Paper Series from New Zealand Treasury

Abstract: This paper examines the potential distributional impacts of demographic change, particularly population ageing, and changes to labour force participation that are projected to arise over the next 50 years. The approach involves calibration weighting of the Treasury’s microsimulation model, Taxwell, based on the New Zealand Household Economic Survey. The weights are adjusted for each projection year to ensure that a range of population aggregates (by age and gender) match the projected values provided by Statistics New Zealand. Measures of income inequality and poverty, along with the incidence of income tax, Goods and Services Tax and a number of components of government spending (namely health and education) across age groups, are obtained. The results suggest that population ageing and expected changes in labour force participation, in isolation, do not have a significant impact on population-level measures of income inequality.

Keywords: Inequality; population ageing; survey calibration; poverty; fiscal incidence (search for similar items in EconPapers)
JEL-codes: H24 I14 I24 J1 (search for similar items in EconPapers)
Pages: 36
Date: 2013-07
New Economics Papers: this item is included in nep-age, nep-dem, nep-ltv, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztwps:13/13

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