The lifecycle deficit in France, 1979–2005

Abstract

International audienceWe use the National Transfer Accounts methodology to calculate the lifecycle deficit in France for the years 1979–2005. During this period, consumption profiles were roughly constant over age, while labor income profiles shifted to higher ages. The share of the aggregate lifecycle deficit in GDP rose sharply in the 1980s due to an increase in the mean age of the population. In contrast, the per capita shares of the lifecycle deficit attributed to the population under 20 and over 60 varied little during this period, even though the relative weights of these two age-segments has shifted continuously in favor of the latter

Financing the Consumption of the Young and Old in France

“…Second, we fit these profiles to the corresponding NA aggregates (d'Albis et al. ). (online) provides more details on the method applied to construct of aggregates and shows numbers of the aggregates (public transfers, labor income, private assets, etc.)…”

“…The age profiles of public transfer in‐kind inflows were presented in detail in recent work on the life‐cycle deficit (d'Albis et al. ). Most age profiles for public transfer cash inflows are known at the individual level from family budget surveys (unemployment benefits, retirement payments, etc.)…”

Generational Economics and the National Transfer Accounts

“…This is to a large extent a reflection of cultural and institutional norms of the countries, but also of the availability and generosity of the public healthcare system in the face of an aging population. In the case of France, d’Albis et al (2015) find that while consumption gradually increases from the beginning of life until the age of 17 years old, overall consumption has been relatively stable in the country for many years, unlike many of its European neighbors. This is particularly attributed to a change in the composition of consumption at old age from private to public, influenced by the country’s encompassing public healthcare system.…”