Dynamic immigration control improving inverse old-age dependency ratio in a pay-as-you-go pension system

Pianese, Augusto; Attias, Anna; Varga, Zoltán

doi:10.1016/j.dss.2014.04.009

Cited by 9 publications

(9 citation statements)

References 10 publications

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“…Practical implications arise because dependency ratios are calculated using the logic of a tripartite life-course model. Dependency ratios are common indicators for the age structure in a population and for the reform pressure on pension schemes [21, 22]. The ratios are calculated using the structure of the tripartite life-course model, which means that they can only be as accurate as the tripartite life-course model itself.…”

Section: Discussionmentioning

confidence: 99%

“…This life-course model allows researchers and practitioners to understand life-course structures at a glance, and it enables researchers to more easily compare life-courses within and across countries and over time [17–20]. Moreover, it is the basis for the calculation of dependency ratios, which are widely used indicators for the progression of population aging and the reform pressure on pay-as-you-go financed pension schemes [21, 22]. These ratios are numerical representations of the relation between dependent and independent individuals in a society, equating middle-agers to independent individuals, and youths and older people to dependent individuals [23, 24].…”

Section: Introductionmentioning

confidence: 99%

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Capturing the diversity of working age life-courses: A European perspective on cohorts born before 1945

Komp-Leukkunen¹

2019

PLoS ONE

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Life-courses describe people’s activities from the cradle to the grave. Because life-courses are typically complex, models are used to simplify their description. The most commonly used model is tripartite, representing lives in subsequent periods of education, work, and retirement. However, researchers criticize this model as limited in the activities considered, overly simplistic in the activity sequence, and blind to variation between life-courses. This article explores working age life-courses, which typically show high diversity. Multichannel sequence and cluster analyses are conducted on people’s activities from age 15 to 65. Data stem from the life-history interviews of the Survey of Health, Ageing and Retirement in Europe, capturing cohorts born before 1945. Findings show that three out of four working age life-courses are in line with the tripartite model. This share is particularly high among men, the cohort born 1935 to 1944, and in Northern and Eastern Europe. In contrast, a considerable share of women spent their working age on homemaking, especially women born before 1935, and those living in Southern Europe. Finally, a smaller number of men spent their working age on paid work, followed by a period of illness or of non-employment. The working age life-course patterns identified are used to develop alternative life-course models. However, for a parsimonious solution, the use of two models suffices. A combination of the tripartite model and the model equating middle age to homemaking captures the lives of more than nine out of ten older Europeans. The prevalence of working age life-course patterns in a population is country-specific, and the country differences align with the welfare regimes. This perspective makes working age life-courses characteristics of a society that can be used to map social inequalities at the macro-level and capture social change over time.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Capturing the diversity of working age life-courses: A European perspective on cohorts born before 1945

Komp-Leukkunen¹

2019

PLoS ONE

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“…This means that, in keeping with [4], we assume that the pension timal immigration strategy, which steers the population towards a demographic equilibrium, see [3], [14] . In any case, in order to our model, we assume that the wage dynamics of the stable part of the pension system are not modied by the demographic wave.…”

Section: Generalities To Control the Demographic Wavementioning

confidence: 99%

Controlling a demographic wave in defined contribution pension systems

Angrisani

Palo

2018

Pure Mathematics and Applications

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In several developed countries, the baby boomers will come to retire in the next decades. This problem will threaten the sustainability and the inter- generational equity of mandatory pay-as-you-go pension systems because they will have to drain the “demographic wave” of retirees with a relatively small number of contributors. In this paper, we give the operating method developed on the basis of a general principle, which a defined contribution pension system, in a state of stable sustainability, should adopt to control these issues in the presence of a demographic wave. In the theoretical profile, our approach breaks and overcomes the classical juxtaposition between funded and pay-as-you-go pension schemes, carrying out the integration of the two financial methods

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“…There have been considerable studies analyzing the fiscal sustainability for the European countries based on the PAYG pension systems (see, for instance, Rother et al [84], Angrisani et al [85], Fehr and Habermann [86], Blake and Mayhew [87], Nannestad [88], Pianese et al [89], Nerlich and Schroth [83], among others), with the inverse old-age dependency ratio the most common indicator used to measure the demographic sustainability.…”

Section: Literature Reviewmentioning

confidence: 99%

Fiscal Sustainability in Aging Societies: Evidence from Euro Area Countries

Ramos-Herrera

Sosvilla‐Rivero

2020

Sustainability

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Fiscal sustainability remains a paramount challenge in the Euro Area (EA) countries after the sharp rise in public debt-to-GDP ratios in the aftermath of the financial crisis of 2008. Using data from 11 EA countries over the period 1980–2019, we apply panel data techniques to examine the effects of population aging on fiscal sustainability, controlling for key macroeconomic variables. Our results suggest that the discretionary fiscal policy is strongly persistent, not being consistent with long-term fiscal solvency. Moreover, our results indicate that the fiscal stance is countercyclical for the countries under study and that population aging poses a major challenge for fiscal sustainability. The findings are robust to a different grouping of countries within the sample (core and peripheral countries, relatively old and young countries, and relatively more and less indebted countries). We consider that our results may have some practical meaning for national policymakers and international organizations responsible for regional and global fiscal surveillance and might shed some light on the possible effects that population aging could have on the effort of EA countries to restore public finances on a sustainable basis.

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Dynamic immigration control improving inverse old-age dependency ratio in a pay-as-you-go pension system

Cited by 9 publications

References 10 publications

Capturing the diversity of working age life-courses: A European perspective on cohorts born before 1945

Capturing the diversity of working age life-courses: A European perspective on cohorts born before 1945

Controlling a demographic wave in defined contribution pension systems

Fiscal Sustainability in Aging Societies: Evidence from Euro Area Countries

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