<abstract xmlns="http://www.w3.org/1999/xhtml"><p>According to the Eurostat the old-age dependency (people aged 65 or above relative to those aged 15- 64) in the EU will rise from 28% in 2010 to 58% in 2060. During the same period total hours works are projected to fall contributing to a low projected economic growth over the next half-century. In this paper we argue that this gloomy picture might be challenged by an increase in the employment rates of older workers. Using Sweden as an illustration we show that the ratio of individuals with income from both pension and market work has increased strongly during the last decade. During the same period economic reforms have been introduced creating economic incentives in order to delay the exit from the labor market. In this paper we demonstrate the importance of these economic reforms in explaining increased working hours. The paper also evaluates the fiscal impact of the increase in the employment rates.</p></abstract>

According to the Eurostat the old-age dependency (people aged 65 or above relative to those aged 15- 64) in the EU will rise from 28% in 2010 to 58% in 2060. During the same period total hours works are projected to fall contributing to a low projected economic growth over the next half-century. In this paper we argue that this gloomy picture might be challenged by an increase in the employment rates of older workers. Using Sweden as an illustration we show that the ratio of individuals with income from both pension and market work has increased strongly during the last decade. During the same period economic reforms have been introduced creating economic incentives in order to delay the exit from the labor market. In this paper we demonstrate the importance of these economic reforms in explaining increased working hours. The paper also evaluates the fiscal impact of the increase in the employment rates.

The rise of working pensioners: the Swedish case

Professor emeritus previously at School of Business. Economics and Law, University of Gothenburg, Sweden

Nordic Tax Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"The rise of working pensioners: the Swedish case"}

According to the Eurostat the old-age dependency (people aged 65 or above relative to those aged 15- 64) in the EU will rise from 28% in 2010 to 58% in 2060....

The rise of working pensioners: the Swedish case

Article Category: Article

Published Online: May 31, 2016

Page range: 41 - 66

Received: Mar 02, 2016

Accepted: Apr 23, 2016

DOI: https://doi.org/10.1515/ntaxj-2016-0003

Keywords
Old age pension, labor supply, tax reforms, microsimulation

© L. Flood and N. Islam, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The rise of working pensioners: the Swedish case

Article Category: Article

Published Online: May 31, 2016

Page range: 41 - 66

Received: Mar 02, 2016

Accepted: Apr 23, 2016

DOI: https://doi.org/10.1515/ntaxj-2016-0003

KeywordsOld age pension, labor supply, tax reforms, microsimulation

© L. Flood and N. Islam, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Old age pension, labor supply, tax reforms, microsimulation