This paper considers the magnitudes of changes in household structures in Denmark over the period 1981-2007. It is found that most transition probabilities display trends, thus indicating that population projections based on an assumption of constant transition probabilities could be seriously flawed. The paper also offers a tentative assessment of what the observed changes in household structures have implied for welfare expenditures over the past 25 years. Focusing on components of welfare services with noticeable differences in unit costs between individuals living as singles and couples, respectively, it is found that the gross fiscal effects of changing household structures may be substantial. However, the net effects are minor yet non-negligible.
|Publication status||Published - 2011|