The role of ageism, tradition and institutional factors Modern welfare states all over the world are facing an unprecedented demographic challenge. Decreasing birth rates and increasing longevity result in ageing populations as well as an ageing workforce. Of course, from a human perspective one can only enjoy and welcome the fact that access to better and healthy food, better sanitation, better housing and better healthcare have resulted in higher life expectancy and an increasing share of the population reaching the ages of 80, 90 or even 100. As can easily be seen from Figure 1, the share of young people in Europe, for instance, is gradually declining between 1950 and 2050, while the share of 65-plus is steadily increasing.From a macroeconomic perspective increasing longevity is not necessarily a feast, when you take into account that all modern welfare states have on the one hand a set of rules and regulations that prevent young people to enter the labour market before a certain age or before they have at least completed some form of education, while on the other hand there are rules and regulations that protect older people and grant them some kind of pension from a certain age, depending on the country where one lives.As can be seen from Table 1, during the first half of the current century, the 65-plus group in Europe will almost double its share and will constitute a quarter of the population in 2050, while the share of the youngest group will fall below 15%. In the meantime, the group from 15 to 65 years old, i.e. the group that in most countries constitutes the working population, is expected to show a decline of about 10 percentage points.Nevertheless, since the turn of the century, there has been a moderate increase in the proportion of workers aged 65 and over in European countries (Eurostat, 2019, see Figure 1).Consequently, the balance between those who are responsible for earning most of GDP and those who live (mostly) on transfers from the working part of the population is shifting, increasing the burden on those who are in the work force. Of course, this does not imply that 65þ citizens do not contribute to national wealth. While some are still involved in paid work and contribute to GDP (we will elaborate on that later on) others contribute to society by way of all kinds of (unpaid) voluntary work and care tasks which is not included in GDP. This allowsfor instance in the case of grandparents caring for their grandchildrenparents to participate (more hours) in the labour market or savesfor instance in the case of older people participating in voluntary workthe library or the museum to extent its opening hours and receive more visitors. So, on the one hand senior citizens contribute indirectly to GDP by allowing others to be more "productive" (in traditional economic terms), while on the other hand senior citizens' activities outside paid work contribute directly to the fulfilment of a lot of needs and desires of other members of society.Altogether, it should not come as a surprise that especial...