Intergenerational redistribution in an ageing society

Abstract

This study explores the critical issue of intergenerational redistribution within the context of an aging society, using data from National Transfer Accounts (NTA) for Moldova 2019-2021. As the population of Moldova continues to age rapidly, the allocation of resources among different age groups becomes increasingly pertinent. This research aims to understand how financial resources are distributed across generations and assesses the implications of these patterns for the overall well- being of society. The NTA framework provides a comprehensive and detailed analysis of economic flows between age groups, encompassing public and private transfers, labor income, and asset-based transfers. Our findings suggest that intergenerational transfers are not uniform across age groups and older people make a significant contribution to supporting younger generations through the allocation of private resources. We also identify the role of public policies and social safety nets in shaping these outcomes. Furthermore, we assess the potential consequences of these redistribution patterns on income inequality, poverty rates, and the overall economic stability in aging societies. Understanding the dynamics of intergenerational redistribution is crucial for policymakers and stakeholders as they grapple with the challenges posed by aging populations. This study contributes valuable insights to the ongoing discourse on how to ensure fairness and sustainability in an aging society and emphasizes the importance of creating policies that foster intergenerational equity and support the well-being of individuals across all age groups. The study was carried out within the project 20.80009.0807.21 "Migration, demographic changes and stabilization policy", 2020-2023.