Aging and the Politics of the Welfare State

21 Pages Posted: 30 Nov 2013

See all articles by David Hollanders

David Hollanders

Tilburg University - Tilburg University School of Economics and Management

Ferry Koster

Erasmus University Rotterdam (EUR) - Faculty of Social Sciences

Date Written: November 15, 2013

Abstract

Analyzing 30 OECD-countries between 1980-2010, this paper estimates the effect of an aging electorate on public expenditure on old age. The main outcome is that an increase in the age of the median voter is not significantly associated with more generous pensions. The second result is that an older median voter is not significantly associated with an increase in pension expenditure relative to GDP. The results do not support the main prediction of median voter models that an older median voter will successfully push for higher individual benefits. There is however a positive and significant effect of the dependency ratio on both public expenditure on old age and on generosity of pensions.

Keywords: aging, retirement, political economy

JEL Classification: C23, H55, J18

Suggested Citation

Hollanders, David and Koster, Ferry, Aging and the Politics of the Welfare State (November 15, 2013). Netspar Discussion Paper No. 11/2013-065. Available at SSRN: https://ssrn.com/abstract=2361118 or http://dx.doi.org/10.2139/ssrn.2361118

David Hollanders (Contact Author)

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Ferry Koster

Erasmus University Rotterdam (EUR) - Faculty of Social Sciences ( email )

3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.ferrykoster.nl

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
43
Abstract Views
485
PlumX Metrics