The Welfare State and the demographic dividend: A cross-country comparison

Gemma Abio, Concepció Patxot, Miguel Sánchez-Romero () and Guadalupe Souto Nieves ()
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Miguel Sánchez-Romero: Wittgenstein Centre (IIASA, VID/OAW and WU)
Guadalupe Souto Nieves: Universitat Autònoma de Barcelona

No 2015/332, UB School of Economics Working Papers from University of Barcelona School of Economics

Abstract: The sustainability of the welfare state is in doubt in many developed countries due to drastic population ageing. The extent of the problem and the margin for reforms depend - among other factors - on the size of the ageing process and the size of the public transfer system. The latter has a crucial impact on the extent to which the first demographic dividend previous to the ageing process turns into a second demographic dividend. The contribution of the different factors driving the demographic dividend is, ultimately, an empirical question. In this paper we contribute to the debate, exploding the cross-country comparison potentialities of the National Transfer Accounts (NTA) database. In particular, we introduce different configurations of the welfare state transfers – Sweden, United States and Spain - into a realistic demography Overlapping Generations (OLG) model and simulate its effects on the second demographic dividend.

Keywords: Ageing; demographic dividend; intergenerational transfers; national transfer accounts; overlapping generations model; welfare state. (search for similar items in EconPapers)
JEL-codes: E21 H53 J11 J18 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2015
New Economics Papers: this item is included in nep-age, nep-dge, nep-eec, nep-mac and nep-pbe
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