All practical evaluations of fiscal sustainability that include the effects of population ageing must utilize demographic forecasts. It is well known that such forecasts are uncertain, and that has been taken into account in some studies by using stochastic population projections jointly with...

This study analyses financial sustainability of the Finnish public sector. Current tax rates are unlikely to yield sufficient tax revenue for financing public expenditure under an ageing population. In the base alternative we assume that the European crisis does not worsen and that productivity...

Europa sieht sich mit einer demographischen Entwicklung konfrontiert, die den Prognosen zufolge die wirtschaftliche Wettbewerbsfähigkeit und den Erhalt der sozialen Standards gefährdet. Vor dem Hintergrund dieser Entwicklung beauftragte die Bundesgeschäftsstelle des AMS Österreich die ÖSB...

Pension prefunding can be used to smoothe contribution rates in economies where ageing will increase pension expenditure. But how extensive should prefunding be, in a defined benefit pension system, when there is considerable uncertainty concerning future mortality, fertility, and migration? We...

Ageing takes place in Finland some 15 years earlier than in other European countries. The central actors in implementing active ageing policies are ministries that have been co-operating with each other. Active ageing policy in Finland has some of the advantages of networking in a small country,...

Väestön ikääntyminen vaikuttaa talouteen paitsi suoraan markkinareaktioiden, kuten korkeampien palkkojen kautta, mutta myös epäsuorasti julkisen talouden kautta. Jälkimmäisiä vaikutuskanavia edustavat nousevien veroasteiden tuottamat käyttäytymismuutokset ja julkisen sektorin...

Is the process of workforce aging a burden or a blessing for the firm? Our paper seeks to answer this question by providing evidence on the age-productivity and age-earnings profiles for a sample of plants in three manufacturing industries (“forest”, “industrial machinery” and...

Ageing will increase pension expenditure and contribution rates. There is also increasing awareness that the risks connected to mortality, fertility, and migration are considerable. In pension reforms one must decide how these risks are to be shared between workers and pensioners, and also take...

The aim of this paper is to analyse active ageing and retirement in Finland at both the individual worker level and the firm level. The Finnish pension system will undergo some remarkable changes from the year 2005 on: the whole of an individual’s working life will determine his or her pension...

We evaluate the effects of aging on productivity using piece-rate earnings as a proxy for worker output. Our data contain the population of Finnish blue collar workers in 61 different industries during 1990-2002. A unique feature of the data is that we can observe the exact hours worked on piece...