Changing Age and Household Patterns

Implications for Welfare Costs in Denmark 1982–2007

Rasmus Højbjerg Jacobsen, Svend E. Hougaard Jensen

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

This paper studies the effects on tax revenues and welfare expenditures in Denmark caused by changes in age and household structures over the years 1982-2007. During that period, there has been a minor fall in the old-age dependency ratio, and a major increase in the number of people living alone, lone parents and cohabiting couples. Focusing on components of welfare services with noticeable differences in unit costs across age and household status, we find that changes in age structures have improved public finances by 1.6% of GDP whereas changing household structures have worsened public finances by almost 1% of GDP on the yearly budget. While the net fiscal effect of changing household structures is minor, the gross effects are substantial. In a future characterized by population ageing, public finances may be adversely affected by changes in both age and household structures, thus intensifying calls for welfare reforms.
OriginalsprogEngelsk
Artikelnummer4
TidsskriftNordic Journal of Political Economy
Vol/bind39
Antal sider20
ISSN0805-7508
StatusUdgivet - 2014

Emneord

  • Ageing populations
  • Household structures
  • Welfare programmes
  • Public finances

Citer dette

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Changing Age and Household Patterns : Implications for Welfare Costs in Denmark 1982–2007. / Højbjerg Jacobsen, Rasmus; Hougaard Jensen, Svend E.

I: Nordic Journal of Political Economy, Bind 39, 4, 2014.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - Changing Age and Household Patterns

T2 - Implications for Welfare Costs in Denmark 1982–2007

AU - Højbjerg Jacobsen, Rasmus

AU - Hougaard Jensen, Svend E.

PY - 2014

Y1 - 2014

N2 - This paper studies the effects on tax revenues and welfare expenditures in Denmark caused by changes in age and household structures over the years 1982-2007. During that period, there has been a minor fall in the old-age dependency ratio, and a major increase in the number of people living alone, lone parents and cohabiting couples. Focusing on components of welfare services with noticeable differences in unit costs across age and household status, we find that changes in age structures have improved public finances by 1.6% of GDP whereas changing household structures have worsened public finances by almost 1% of GDP on the yearly budget. While the net fiscal effect of changing household structures is minor, the gross effects are substantial. In a future characterized by population ageing, public finances may be adversely affected by changes in both age and household structures, thus intensifying calls for welfare reforms.

AB - This paper studies the effects on tax revenues and welfare expenditures in Denmark caused by changes in age and household structures over the years 1982-2007. During that period, there has been a minor fall in the old-age dependency ratio, and a major increase in the number of people living alone, lone parents and cohabiting couples. Focusing on components of welfare services with noticeable differences in unit costs across age and household status, we find that changes in age structures have improved public finances by 1.6% of GDP whereas changing household structures have worsened public finances by almost 1% of GDP on the yearly budget. While the net fiscal effect of changing household structures is minor, the gross effects are substantial. In a future characterized by population ageing, public finances may be adversely affected by changes in both age and household structures, thus intensifying calls for welfare reforms.

KW - Ageing populations

KW - Household structures

KW - Welfare programmes

KW - Public finances

M3 - Journal article

VL - 39

JO - Nordic Journal of Political Economy

JF - Nordic Journal of Political Economy

SN - 0805-7508

M1 - 4

ER -