The risk of imbalances in the financing of social protection in the context of demographic ageing

• Published in: Współczesna ekonomia Vol. 2; no. 1; pp. 69 - 81
• Main Authors: Boboc, Cristina, Voineagu, Vergil
• Format: Journal Article
• Language: English
• Published: Warsaw Vizja Press & IT 03.01.2008
• ISSN: 1897-9254
• DOI: 10.5709/ce.1897-9254.o45

In the next decades, developed countries will experience dramatic changes in their demographic trends. The retirement of the wide baby-boom generations, the increase in life expectancy and the decline in fertility ratios are likely to modify the size and the age-structure of their populations. The expected population ageing in European countries will burden the pension systems, especially wherever the pay-as-you-go pillar is predominant. Recently, migration has received a widespread attention as a solution to expected population decline and ageing in these countries. The flow of (young) migrants to developed countries is perceived as a means to alleviate the financial burden of pension systems. The aim of this contribution is to clarify the issue of aging on labour and capital markets in a macroeconomic perspective. A special attention is given to the risk of imbalances in the financing of social protection in the context of demographic ageing.