Changing Age and Household Patterns: Implications for Welfare Costs in Denmark 1982–2007

Rasmus Højbjerg Jacobsen, Svend E. Hougaard Jensen

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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.
Original languageEnglish
Article number4
JournalNordic Journal of Political Economy
Volume39
Number of pages20
ISSN0805-7508
Publication statusPublished - 2014

Cite this

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title = "Changing Age and Household Patterns: Implications for Welfare Costs in Denmark 1982–2007",
abstract = "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.",
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author = "{H{\o}jbjerg Jacobsen}, Rasmus and {Hougaard Jensen}, {Svend E.}",
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journal = "Nordic Journal of Political Economy",
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Changing Age and Household Patterns : Implications for Welfare Costs in Denmark 1982–2007. / Højbjerg Jacobsen, Rasmus; Hougaard Jensen, Svend E.

In: Nordic Journal of Political Economy, Vol. 39, 4, 2014.

Research output: Contribution to journalJournal articleResearchpeer-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 -