Age-Specific Income Trends in Europe and the Role of Government Redistribution

Bernhard Hammer , Wittgenstein Centre (IIASA, VID/ÖAW, WU)
Sonja Spitzer, Wittgenstein Centre for Demography and Global Human Capital
Alexia Fürnkranz-Prskawetz, Vienna Institute of Demography

Age-specific income trends differ considerably across European countries, with the old-age orientation of welfare states as one important explanation. Previous research and preliminary data suggests that income of the young working-age population declined in most European countries in the aftermath of the financial crisis of 2008, while the income of the population older than 60 was hardly affected. Our analysis combines data from the European System of Accounts with European micro data to get comparable estimates of individual net income by age and gender. These data are used to analyse age-specific income differences and their change during the period 2008-2021 in all European countries. A particular focus is on the role of taxes and social benefits in shaping income trends

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 Presented in Session 83. Economic Impacts of Population Change