The Effects of Demographic Change on the Generational Economy: Financial Sustainability, Intergenerational Inequality, and Material Living Standards

James Rice, University of Melbourne

The generational economy – which is that aspect of the economy that pertains to the economic activities of, and the economic relationships between, different ages and generations – can be evaluated on the basis of a number of criteria. The most critical of these include the financial sustainability of the generational economy, the intergenerational inequality that the generational economy creates, and the material living standards associated with the generational economy. How the generational economy performs in terms of these three criteria is, moreover, shaped by underlying processes of demographic change, including changes in fertility, mortality, and international migration. Drawing on National Transfer Account estimates for over 60 countries, together with the United Nations’ 2024 Revision of World Population Prospects, this paper examines how variations in fertility, mortality, and international migration shape the performance of generational economies around the world in terms of the three criteria mentioned earlier: financial sustainability, intergenerational inequality, and material living standards.

Keywords: Economic Demography, Population Ageing, Population Policies

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