Public Transfers and the Age-Profile of Poverty in Europe

34 Pages Posted: 29 Jan 2012

Date Written: March 26, 2009

Abstract

Ensuring adequate living standards to a growing number of elderly while restraining the growth of pension spending represents the main challenge for pension policy in most countries. There is a need for an in-depth analysis of the economic conditions of the elderly which can help targeting resources in the coming years to the more needy groups. Children are another potentially vulnerable group of the population: their poverty can affect human capital accumulation and have long lasting effects on life-time well-being. Using data from the latest wave of the EU Survey on Income and Living Conditions (SILC), we document that the poverty rates of these two age groups with respect to the other components of the population differ considerably across European countries. These differences are largely due to the different anti-poverty effectiveness of national social policies. In particular, in 'Social Democratic' and 'Corporatist' welfare states the age-profile of poverty is flat; on the contrary, in Anglo-Saxon and especially in Southern European countries young and elderly groups show remarkably higher poverty rates.

Keywords: child poverty, old age poverty, social expenditure

JEL Classification: D31, H53, H55, I32, I38

Suggested Citation

Franco, Daniele and Marino, Maria Rosaria and Tommasino, Pietro, Public Transfers and the Age-Profile of Poverty in Europe (March 26, 2009). Available at SSRN: https://ssrn.com/abstract=1992461 or http://dx.doi.org/10.2139/ssrn.1992461

Daniele Franco (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy
+39 06 4792 2793 (Phone)
+39 06 4792 2324 (Fax)

Maria Rosaria Marino

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy
+39 06 47924134 (Phone)
+39 06 47922324 (Fax)

Pietro Tommasino

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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