Loek Groot

Email: l.f.m.groot@uu.nl

Loek GrootLoek Groot is Associate Professor of Economics of the Public Sector at Utrecht University School of Economics (USE). His research focuses on the economics of the welfare state and the interaction with the labour market, with a special focus on the proposal of a basic income. His PhD, ‘Basic income and unemployment’ (1999), was awarded cum laude. Other research interests are environmental economics and sport economics. Currently he is working on a project under the working title ‘World’s public goods’.

Papers Published in World Economics:

Demographic Change Across the Globe

This paper investigates the fiscal pressure, or the level of public expenditure on old and young economically inactive people, arising from demographic change in relation to the labour market space, or the proportion of the working age population not in full-time employment. The exercise is carried out for 50 countries that cover 75% of the world population. The pressure-to-space indicator ranks Poland, Turkey and Greece high, although, apart from Turkey and India, developing countries generally rank low due to low spending on the old (pensions, healthcare) and on the young (education, family costs). Peculiarly, economies with higher pressure have more space. The hypothesis that ageing economies have started using their labour market space in anticipation of higher demographic pressure is rejected. It is important to note that raising the retirement age in developed economies by five years alleviates fiscal pressure by almost 30% and creates 10% more labour market space.

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