'Honey, I Shrunk the Kids’ Benefits!' − Revisiting Intergenerational Conflict in OECD Countries
Wilfried Guth Chair of Constitutional Political Economy and Competition Policy
CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute
December 6, 2011
Center for international Economics Working Paper No. 2011-13
Intergenerational conflicts may arise when interests of different age groups do not align. We examine cross-country data to find evidence for this conflict in OECD countries. We derive our results from a FGLS estimation model, which is complemented by a System-GMM estimation. Data covers a panel of 22 OECD countries over the time period 1985-2005. We find little support for intergenerational conflict in general; however, those who are close to (statutory) retirement age dislike public expenditure for families and education because, once they retire, they have to adapt to lower retirement income levels compared to previous work income. This effect lasts for a transitory period only.
Number of Pages in PDF File: 48
Keywords: Intergenerational Conflict, Family Benefits, Population Ageing, Education Expenditure, Voting, Retirement Income Shock
JEL Classification: D72, H50, J13, J14, I22working papers series
Date posted: January 6, 2012
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